Asian Company Purchased Land for W96,000,000 in 2000

question 86

Multiple Choice

Asian Company purchased land for W96,000,000 in 2000.At December 31, 2011, an appraisal determined the fair value of the land is W106,000,000.The company has an investment in the ordinary shares of another company for which it paid W49,000,000 in 2009.The shares are actively traded on the South Korea Stock Exchange.The fair value of the investment at December 31, 2011 is W66,000,000.The land and investment will be reported on the December 31, 2011 statement of financial position at

• A)W96,000,000 and W49,000,000, respectively.
• B)W96,000,000 and W66,000,000, respectively.
• C)W106,000,000 and W49,000,000, respectively.
• D)W106,000,000 and W66,000,000, respectively.

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Definitions:

Actual Performance

The real, observed outcomes or results achieved by an individual, team, or organization, often compared against planned or expected performance.

Control

The process of directing, monitoring, and adjusting resources and operations to achieve certain objectives.

Actual Performance

The real, observed results achieved by an organization or individual, contrasted with planned or expected performance.

Expand Activities

The process of increasing the scope, reach, or scale of a company's operations or projects.