ACCOUNTING TREATMENT ON DUAL PURPOSE PROPERTY

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The company owns and operate a hotel property. Half of the rooms are leased out on long term lease and balance rooms operates on short term rental. Short term guests are provided with breakfast and daily cleaning services. The property has been taken into books on fair value basis and total property is recognized as an investment property. How to correctly account this?
 

kirby

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Post belongs in the Homework Forum and subject to the policies there.
 
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The accounting treatment for dual purpose property involves allocating costs based on its predominant use. If the primary use is for generating income, expenses are typically treated as revenue expenditure. If it serves both business and non-business purposes, apportionment methods like square footage or time allocation are employed to determine deductible expenses.
 

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