On Sept 30, 2020, ABC acquired a building to earn rent through operating leases. The investment property was initially measured at P20,000,000. It has an estimated useful life of 25 years and a...

On Sept 30, 2020, ABC acquired a building to earn rent through
operating leases. The investment property was initially measured at
P20,000,000. It has an estimated useful life of 25 years and a
residual value of P400,000. It has a fair value of P22,000,000 and
P23,000,000 as of the end of 2020 and 2021 respectively.

A. Using the cost model, what is the depreciation expense for
the year 2020? Note that asset was acquired on Sept. 30.
B. Using the cost model, what is the carrying value of the
investment property on Dec. 31, 2021?

C. Using the fair value model, what is the carrying value on
Dec. 31, 2020?
D. Using the fair value model, what is the gain or (loss) from
change in fair value?