1. ABC Company acquired an investment property for P2,000,000 on January 1, 2019.

The purchase price includes directly attributable costs of P100,000. The property
has a useful life of 20 years with no salvage value. The entity used the fair value
model in carrying this investment property. On December 31, 2019, the property
has a fair value of P1,800,000. What is the carrying value of the investment
property as of December 31, 2019?
a. P2,000,000
b. P1,900,000
c. P1,800,000
d. P1,805,000
 
2. ABC Company acquired an investment property for P2,000,000 on January 1, 2019.
The purchase price includes directly attributable costs of P100,000. The property
has a useful life of 20 years with no salvage value. The entity used the cost model in
carrying this investment property. On December 31, 2019, the property has a fair
value of P1,800,000. What is the carrying value of the investment property as of
December 31, 2019?
a. P1,800,000
b. P2,000,000
c. P1,805,000
d. P1,900,000