Final Answer:
C. $8 million - Ore Body Corp. (OBC) will report $8 million as the net outbuilding asset on its statement of financial position as at December 31, 2021
Step-by-step explanation:
Ore Body Corp. (OBC) is required to report the outbuilding asset, net, on its statement of financial position as at December 31, 2021. The amount to be reported is determined by considering the relevant information provided. In this case, the correct answer is $8 million, as this figure reflects the net value of the outbuilding asset based on the given details.
The net outbuilding asset is calculated by subtracting any accumulated depreciation or impairment from the original cost. Without specific information on depreciation or impairment, we can infer that the net value is the same as the original cost, which is $8 million in this scenario. Therefore, the correct choice is option C, $8 million.
In financial reporting, the net value of assets is crucial for stakeholders to understand the true economic value of a company. This value represents the amount that would be received or paid if the asset were sold or settled. It provides insights into the company's financial health and its ability to generate future cash flows. In summary, Ore Body Corp. should report $8 million as the net outbuilding asset on its statement of financial position as at December 31, 2021.