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Entity A owned an investment property on 1 January 2021. The investment property was sold...

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Accounting

Entity A owned an investment property on 1 January 2021.

The investment property was sold on 30 June 2021 for $1,550,000 with selling costs of $50,000.

On 30 June 2021, the carrying amount of the investment property was $1,004,000 if the cost model was applied. On the same day, the fair value of the investment property was $1,300,000 if the fair value model was applied.

REQUIRED:

Evaluate the amount of Gain on disposal under

  1. The cost model $
  2. The fair value model $

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