BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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LAND THAT IS HELD FOR CAPITAL APPRECIATION
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BUILDING LEASED OUT UNDER AN OPERATING LEASE
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BUILDING THAT IS CONSTRUCTED FOR FUTURE USE AS INVESTMENT PROPERTY
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LAND FOR SALE IN THE ORDINARY COURSE OF BUSINESS
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Detailed explanation-1: -Examples of assets that are not investment property are property intended for sale in the near term, property being constructed for a third party, owner-occupied property, and property leased to a third party under a finance lease.
Detailed explanation-2: -The term “investment property” may also be used to describe other assets an investor purchases for the sake of future appreciation such as art, securities, land, or other collectibles.
Detailed explanation-3: -Investment property is property that consists of land, a building or part of a building, or both land and building, held by an owner, or lessee under a finance (capital) lease, for the purpose of earning rent, for capital appreciation, or for both rental income and capital appreciation.
Detailed explanation-4: -If you hold a building or a land for any of the following purposes, then it cannot be classified as investment property: For production or supply of goods or services, For administrative purposes, or. For sale in ordinary course of business.