On July 1, 2019, Danielle Investments Corp. (DIC) purchased land and buildings and agreed to rent the facility to a non-affiliated company on a month-by-month basis. Pertinent details follow:

• DIC paid $6.0 million for the investment property plus $200,000 in related legal fees and $100,000 to a rental agency company for negotiating the rental agreement.
• The purchase price was allocated 80% to the building and 20% to the land.
• The estimated useful life of the building is 30 years at which time the salvage value is expected to be $0.
• DIC uses the straight-line method to depreciate all depreciable assets.
• An appraisal valued the investment property at $6.4 million as at DIC’s December 31, 2019, year-end—$5.1 million building and $1.3 million land.

Required:
a. Prepare the journal entry to record the purchase of the property.
b. Prepare the year-end adjusting entries for 2019 assuming that DIC elects to use the cost model to account for its investment properties.
c. Prepare the year-end adjusting entries for 2019 assuming that DIC elects to use the fair value model to account for its investment properties.