Question

Dayanara Company owns three properties which are classified as investment properties. Details of the properties are as follows: Initial Cost Fair Value 12/31/2019 Fair Value 12/31/2020 Property 1 $2,700,000 $3,200,000 $3,500,000 Property 2 $3,450,000 $3,000,000 $2,280,000 Property 3 $3,300,000 $3,900,000 $3,400,000 Each property had an estimated useful life of 25 years. The entity's accounting policy is to use the fair value model for investment properties. What is the carrying value of the investment properties that should be presented for the year ended December 31, 2020, in the statement of financial position?

          Dayanara Company owns three properties which are classified as investment properties. Details of the properties are as follows:
Initial
Cost
Fair Value
12/31/2019
Fair Value
12/31/2020
Property 1
$2,700,000
$3,200,000
$3,500,000
Property 2
$3,450,000
$3,000,000
$2,280,000
Property 3
$3,300,000
$3,900,000
$3,400,000
Each property had an estimated useful life of 25 years. The entity's accounting policy is to use the fair value model for investment properties.
What is the carrying value of the investment properties that should be presented for the year ended December 31, 2020, in the statement of financial position?

Added by Laura S.

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