Assume That an Investment Group Owns a High-Rise, Oceanfront Condominium

Essay

Assume that an investment group owns a high-rise, oceanfront condominium building that it rents unfurnished to tenants.The group purchased the building five years ago from a construction company.At that time, it expected the building to have a useful life of 40 years.Explain the procedures you might follow as the investor group's accountant to ascertain the measurement amount for this building under each of the following approaches:

a.Acquisition cost.
b.Adjusted acquisition cost (reduced for services already consumed).
c.Current replacement cost.
d.Net realizable value.
e.Fair value.