1. On 1 January xl, ACE purchased a property comprising freehold land and building costing RM15 million. The cost of the land was RM5 million. The building was used to operate its business. The estimated useful life of the building was 20 years. The company adopted the cost model. On 1 July x5, the company ceased using the building to operate its business and began letting it out at market rental. The fair value of the land on 1 July x5 was RM6.2 million and of the building RM11 million. The entity would adopt the fair value model to measure the investment property. Required: a. Discuss the accounting treatment of the land and building in years xl and x5. b. Discuss the accounting treatment of the land and building in years xl and in x5 if the company had used the revaluation model. The fair value of land and building was RM11 million and RM10.8 million, respectively on 31 December x2. - Viro