Maria Fiona A.

Labucuas
BSA 12C-B

PROBLEM 22-4
Fair Value 12/31/21 Fair Value 12/31/22 Gain(Loss)
Property 1 $ 3,200,000.00 $ 4,000,000.00 $ 800,000.00
Property 2 $ 3,000,000.00 $ 2,100,000.00 $ (900,000.00)
Property 3 $ 3,900,000.00 $ 3,600,000.00 $ (300,000.00)
Net Gain (Loss) $ (400,000.00)

ANSWER: B) 400,000 LOSS

PROBLEM 22-6

Fair Value, 12/31/22 $ 5,900,000.00

Fairl Value, 12/31/21 $ 6,000,000.00
Loss from Change in Fair Value $ (100,000.00)

Original Cost $ 5,800,000.00

Useful Life 40
Depreciation Expense, 2022 $ 145,000.00

ANSWER: B) Fair Value Model: 100,000; Cost Model: 145,000

PROBLEM 22-8

Cost of the Investment Property $ 5,000,000.00

Accumulated Depreciation $ (250,000.00)
5,000,000 / 20 years
Carrying Amount, 12/31/21 $ 4,750,000.00

ANSWER: D) 4,750,000