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

question 85

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 Cost 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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