+852 3442-7995 (for postgraduate courses) 1 1 point Raycloud Ltd. acquires a building with a useful life 8 years on July 1, 2018, for $1,000,000 with the intention of self-occupation. The building has a residual value of $200,000 at the end of its useful life. Raycloud uses the revaluation model for the building. Raycloud's policy is to eliminate accumulated depreciation against the gross carrying amount of the building in a revaluation. The building is valued at the end of 2018 & 2019 as: 2018: $1,100,000 2019: $700,000 At the end of 2018, Raycloud Ltd. changes its intention from self-occupation to investment property for rental purposes. Raylcoud Ltd. depreciates all its PPE on a straight-line basis. Raycloud Ltd. uses the fair value model for its Investment Properties. Required: Provide all necessary accounting entries to be recorded on 31 December 2018 & 2019 relating to the building for the transactions of acquisition, fair value adjustment, and transferring to investment property. (5 marks) BI UA-A - IX E 33 x x 5 E 12pt Paragraph - fx