Creed Corp has an investment property it paid $20,000,000 for on January 1, 2020. The cost was apportioned 25% to land and 75% to the building. The building is expected to last 40 years with a $1,000,000 residual value. The property was appraised at December 31, 2020 at $21,000,000. The company has a December 31, 2020 year end and uses straight-line depreciation.

Required (show all calculations, round amounts to the nearest dollar):

1. Prepare all of the 2020 journal entries for Creed for the property assuming the cost method is used to account for the investment property.
2. Prepare all of the 2020 journal entries for Creed relating to the property assuming instead that the fair value model is used to account for the investment property.
3. Which method results in higher income for 2020 for Creed? Provide the impact ($ and +/-) on 2020 income for both methods showing your calculations.