Question 6.25: Company ALFA purchased a piece of land in the amount of 280,...
Company ALFA purchased a piece of land in the amount of 280,000 lei, commission expenses amounted to 22,000 lei and notary fees amounted to 8000 lei. The land is meant to be rented to third parties. On March 1st, 20X1, immediately after the purchase, the fair value of the asset is 325,000 lei. On December 31st, 20X1, the fair value increases to 337,000 lei and on December 31st, 20X2, the fair value decreases to 330,000 lei. How does ALFA treat the transactions regarding the land in terms of the accounting treatment, noting that the company uses the fair value model for its investment property in the financial years 20X1 and 20X2?
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