Fair value model
In February 2020, Jordan Corp. purchased a vineyard in southern Ontario for $ 7.5 million cash. This amount included legal fees of $ 18,000 and property taxes of $ 40,000 (of that amount, $ 30,000 were in arrears). Based on appraisals, the property's year-end fair values were $ 8.2 million at the end of 2020, and $ 8 million at the end of 2021.
Other information:
1.The vineyard qualifies as investment property.
2.Jordan applies the fair value model to all its investment property.
Instructions
Prepare all required journal entries for 2020 and 2021.

Question

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The Answer of Fair value model
In February 2020, Jordan Corp. purchased a vineyard in southern Ontario for $ 7.5 million cash. This amount included legal fees of $ 18,000 and property taxes of $ 40,000 (of that amount, $ 30,000 were in arrears). Based on appraisals, the property's year-end fair values were $ 8.2 million at the end of 2020, and $ 8 million at the end of 2021.
Other information:
1.The vineyard qualifies as investment property.
2.Jordan applies the fair value model to all its investment property.
Instructions
Prepare all required journal entries for 2020 and 2021.

Fair Value Model In February 2020, Jordan Corp. Purchased a Vineyard in Southern