VIOLET Company acquired an investment property on March 31, 2019 for 4,830,000. In addition, 210,000...
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VIOLET Company acquired an investment property on March 31, 2019 for 4,830,000. In addition, 210,000 was paid to the local authority as property transfer tax and 280,000 paid to professional advisers. The useful life of the property is 40 years. The fair market values of the property on December 31, 2019 and 2020 were 5,600,000 and 5,400,000 respectively. If the company is using the cost model what amount of investment property should be reported in the December 31, 2020 statement of financial position?
5,400,000
5,054,000
5,087,250
5,320,000
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