Entity A owned an investment property on 1 January 2021. 

The investment property was sold on 30 June 2021 for $1,550,000 with selling costs of $50,000. 

On 30 June 2021, the carrying amount of the investment property was $1,004,000 if the cost model was applied. On the same day, the fair value of the investment property was $1,300,000 if the fair value model was applied. 

REQUIRED:

Evaluate the amount of Gain on disposal under?

The cost model $

The fair value model $

Answer rating: 100% (QA)

To evaluate the amount of gain on disposal under the cost model and fair value model we need ... View the full answer