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Paris Company owns and manages Hilton Hotel.  The hotels total floor space is 10,000 sq. meters.  Fifteen percent of the total floor space is occupied by the Company and used in providing ancillary services in the hotel’s occupants.  As of December 31, 2018, the hotel has a carrying amount of P25,600,000 and an estimated remaining useful life of 24 years.  Paris uses the straight-line method of depreciation.  If the ancillary services provided to occupants are significant, how much would be shown as investment property in Paris Company’s December 31, 2019 financial statements? a. 24,533,333 b. 20,853,333 c. 23,466,667 d. 0

Paris Company owns and manages Hilton Hotel.  The hotels total floor space is 10,000 sq. meters.  Fifteen percent of the total floor space is occupied by the Company and used in providing ancillary services in the hotel’s occupants.  As of December 31, 2018, the hotel has a carrying amount of P25,600,000 and an estimated remaining useful life of 24 years.  Paris uses the straight-line method of depreciation.  If the ancillary services provided to occupants are significant, how much would be shown as investment property in Paris Company’s December 31, 2019 financial statements? a. 24,533,333 b. 20,853,333 c. 23,466,667 d. 0

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Paris Company owns and manages Hilton Hotel.  The hotels total floor space is 10,000 sq. meters.  Fifteen percent of the total floor space is occupied by the Company and used in providing ancillary services in the hotel’s occupants.  As of December 31, 2018, the hotel has a carrying amount of P25,600,000 and an estimated remaining useful life of 24 years.  Paris uses the straight-line method of depreciation.  If the ancillary services provided to occupants are significant, how much would be shown as investment property in Paris Company’s December 31, 2019 financial statements?

a. 24,533,333
b. 20,853,333
c. 23,466,667
d. 0
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