ABC Company acquired a small multi-store shopping plaza on February 2, 2019 for a purchase price of $1,000,000 (including the land and building). This property qualifies as an Investment Property for accounting purposes. ABC Company has a December 31 year-end, follows IFRS, and will be applying the Fair Value Model of accounting for this investment property. Consider the following additional information: In addition to the purchase price, ABC Company had to pay $40,000 for a property transfer fee and $3,000 for legal fees. These fees were paid in cash. The purchase price of the investment property was financed with a mortgage of $730,000 and the rest was paid in cash. 3 9 0 1 At the time of acquisition, the previous owner turned over $37,000 of cash relating to tenant damage deposits previously collected and held. This money will be returned to the tenant at the end of their lease period. Some empty store space was repainted before being advertised for rental. This cost was $2,000 and paid for in cash. 23 24 25 The investment property had the following fair values as determined by an independent property appraisal firm: December 31, 2019 December 31, 2020 .......... December 31, 2021 ........ $ $ $ 1,040,000 1,028,000 1,100,000 Required: 1.) Prepare the journal entry to record the acquisition of the investment property on on February 2, 2019. 2.) Prepare all other necessary journal entries for 2019, 2020, and 2021. ABC Company purchased a truck by issuing an $80,000, 8% note to XYZ Inc. Interest is payable annually and the note principal is payable at the end of 4 years. The market rate for similar notes of the same risk is 12%. Required: 1.) Prepare the journal entry to record the acquisition of the truck. 2.) Prepare the journal entry required at the end of year 1 of the note by applying the Effective Interest Method