Blue Limited acquired a property on 1 January 2018 at a cost of N$4,2 million. It...

  

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Blue Limited acquired a property on 1 January 2018 at a cost of N$4,2 million. It was immediately leased out as an investment property for a period of 1.5 years until 30 June 2019. On 1 July 2019 the company took occupation of the property as its administrative headquarters. The fair values of the property were determined as follows: . On 31/12/2018: N$4,500 000 • On 01/07/2019: N$5,200 000 ● On 31/12/2019: N$5,300 000 The accounting policy of the company is to depreciate buildings at 4% per annum on the straight-line basis. The company adopts the cost model for property, plant and equipment and the fair value model for investment properties. Required: a) Prepare an extract from the profit before tax note for the year ended 31 December 2019 b) Prepare an extract from the statement of financial position as at 31 December 2019 Blue Limited acquired a property on 1 January 2018 at a cost of N$4,2 million. It was immediately leased out as an investment property for a period of 1.5 years until 30 June 2019. On 1 July 2019 the company took occupation of the property as its administrative headquarters. The fair values of the property were determined as follows: . On 31/12/2018: N$4,500 000 • On 01/07/2019: N$5,200 000 ● On 31/12/2019: N$5,300 000 The accounting policy of the company is to depreciate buildings at 4% per annum on the straight-line basis. The company adopts the cost model for property, plant and equipment and the fair value model for investment properties. Required: a) Prepare an extract from the profit before tax note for the year ended 31 December 2019 b) Prepare an extract from the statement of financial position as at 31 December 2019

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A Extract from the profit before tax note for the year ended 31 Dece... View the full answer