ABC Inc Purchased a Shopping Complex and with It, a Large

question 198

Multiple Choice

ABC Inc. purchased a shopping complex and with it, a large condominium complex attached to it in the amount of $20,000,000 on January 1, 2013. Both complexes are designated investment property. Both facilities are estimated to have a useful life of eighteen years and a salvage value of $2 million dollars. On December 31^st, 2013, the fair value of both complexes was $25 million. ABC Inc. prepares its financial statements under IFRS. Assuming that ABC uses the Fair Value Model to account for the complex, the carrying value of both complexes on December 31^st, 2013 would be:

• A) $16 million.
• B) $25 million.
• C) $18 million.
• D) $19 million.

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Definitions:

Inter-Colonial Militia

Armed forces composed of volunteers from different colonies, created for mutual defense and protection during the early colonial period in North America.

King William's War

The North American conflict (1689-1697) between France and England that was part of the larger Nine Years' War.

Iroquois

A historically powerful northeast Native American confederacy known for its political and organizational skills, as well as its influential role in American and Canadian history.

William and Mary

A public research university in Williamsburg, Virginia, and also refers to the reign of King William III and Queen Mary II of England.