Multiple Choice
ABC Inc. purchased a shopping complex and with it, a large condominium complex attached to it in the amount of $20,000,000 on January 1, 2013. Both complexes are designated investment property. Both facilities are estimated to have a useful life of eighteen years and a salvage value of $2 million dollars. On December 31st, 2013, the fair value of both complexes was $25 million. ABC Inc. prepares its financial statements under IFRS. Assuming that ABC uses the Fair Value Model to account for the complex, the amount of amortization expense to be recorded on ABC's 2013 financial statements would be:
A) $2 million.
B) $1 million.
C) $1.8 million.
D) Nil.
Correct Answer:
Verified
Correct Answer:
Verified
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