Question: show solution For items 18 and 19, please refer to the following information: ABC Company acquired a building on January 1, 2021 for a total

show solution For items 18 and 19, please refer to the

show solution

For items 18 and 19, please refer to the following information: ABC Company acquired a building on January 1, 2021 for a total cost of P6,000,000 and classified it as investment property. ABC uses the fair value model. On January 1, 2025, when the carrying amount of the building is P4,000,000. The elevator of the building was replaced for a total cost of P800,000. It is impracticable to determine the fair value of the replaced part. The fair value of the investment property on December 31, 2025 is P4,300,000. 18. Provide the entry on January 1, 2025 to recognize the new replacement part. (5 pts.) 19. Provide the entry on December 31, 2025 to recognize the loss on the change in fair value. (5 pts.)

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