Hinton Property Management Company (HPMC) owns several properties that it rents to major hotel chains such as The Westin and Holiday Inn. HPMC does not operate the hotels but instead simply provides the physical structures and maintains essential services for the building (heating, cooling, electricity, water, etc.). The hotel companies provide the management and staff needed to provide accommodations, meals, and business services.
In 2018, HPMC paid $50 million for a property in Halifax—$30 million for the building and $20 million for the land. The company then rented the property to a hotel chain. At the time of purchase, HPMC estimated that the building would have a remaining useful life of 25 years and residual value of $5 million. The company has a straight-line depreciation policy on buildings, with a full year of depreciation in the year of acquisition. For PPE, the company uses the revaluation model using the elimination method. The company has a December 31 year-end.
At the end of 2018, a professional appraisal indicates a value of $31.4 million for the building and $17.5 million for the land due to increasing construction costs for new buildings. At the end of 2019, the appraisal values changed to $32 million for the building and $19.5 million for the land.

Required:
a. Record the year-end adjusting entries relating to HPMC’s property for 2018 and 2019.
b. Record the year-end adjusting entries for 2018 and 2019 relating to HPMC’s property if the company, in addition to owning the property, also operates it as a hotel.