On 28 April 20X2, Peele Realty purchased land and building for $4.65 million and $2.79 million, respectively.  The company uses the revaluation model for the land and building. Assume that the land is revalued annually. The building is revalued every two years.

The fair value of the land at the end of 20X2, 20X3 and 20X4 was $4.68 million, $4.39 million and $4.83 million. The fair value of the building at the end of 20X3 was $3.15 million. The building is amortized on a straight-line basis and has a 30-year useful life. Peele takes a full year of depreciation in the year acquired.

Required:

1. Prepare the journal entries under the revaluation model for the land in 20X2, 20X3 and 20X4.

2. Prepare the journal entries under the revaluation model for the building in 20X3, using:

1. The proportionate method

2. The elimination method