Countdown Ltd owns and manages a large office block and classifies it as an investment property. It acquired the property on January 3, 2018 for a total cost of $18 million. It is estimated that 25% of the cost of the property is for land.

Countdown Ltd estimates the useful life of the building is 30 years from the date of purchase and the estimated residual value is $1.5 million. The corporation uses the straight-line method of depreciation. The year-end for the corporation is December 31.

Professional property valuation consultants have the reported the office block fair values are as follows:

December 31, 2018	$18,200,000
December 31, 2019	$15,900,000
December 31, 2020	$16,400,000

REQUIRED:

1. Assume Countdown Ltd decides to apply the cost model for investment properties using IAS 40 Investment Properties. What journal entry, if any, is required on December 31, 2018?
2. Assume the company decides to apply the fair-value model instead, using IAS 40 Investment Properties.
   1. Prepare the journal entries required, if any, at each December 31 year-end: 2018, 2019, and 2020.
   2. Show how the office block would be reported in the 2018, 2019, and 2020 year-end Statements of Financial Position (including correct classification).