Question 6.26: Company GAMMA owns a building (investment property) which wa...
Company GAMMA owns a building (investment property) which was rented to third parties. On December 31st, 20X2, the managers decide to start using this building for the company’s administrative purposes. The building’s fair value at December 31st, 20X1, amounts to 22,000 lei and on December 31st, 20X2, 22,500 lei. The carrying amount of the investment property on December 31st, 20X1, is 20,000 lei. At the beginning of financial year 20X3, the useful life of the building is estimated to be 20 years. On December 31st, 20X3, the building’s recoverable value amounts to 19,500 lei. Disclose the accounting aspects of the building for financial years 20X1 to 20X3.
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