Norvane transfers to investment property a building it held as inventory, after signing a lease with a tenant (change in use evidenced, case data). Carrying amount of inventory: 2,700,000; fair value at the date of the change: 3,000,000. It applies the fair value model. Record the transfer entry.
- Carrying amount of inventory before transfer
- 2,700,000
- Fair value at the date of the change in use
- 3,000,000