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On 13 February 205, Reekwa Company purchased an office tower for $32.0 million. The office...

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Accounting

On 13 February 205, Reekwa Company purchased an office tower for $32.0 million. The office is a mixed-use property: it is owneroccupied and includes rental units. The fair value of the building on 31 December 206 is $32.4 million and $28.9 million on 31 December 208.
At the time of purchase, the office tower has a remaining useful life of 25 years, and is amortized on a straight-line basis.
10
Required:
points
Should the office tower be considered property, plant, and equipment or investment property?
01:01:37
Property, plant, and equipment
Investment property
eBook
Assume the property is determined to be PPE, and management applies the elimination method for the revaluation model. Prepare
References the required journal entries for the revaluation of the office tower in 206 and 20X8.(If no entry is required for a transaction/event, select "No journal esintry required" in the first account field.)
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