Exercise 1 - Investment property Journal entries On January 1, 2020, Saitama Investment Corp acquired the following investments for cash: Land P7,500,000 Building P9,000,000 Saitama spent P400,000 for repainting of the building and minor repair before the building can commence its primary purpose of renting out to tenants. The building has an expected useful life of 10 years. An expert provided the following fair values of the building: December 31, 2020 P8,000,000 December 31, 2021 P7,500,000 Saitama paid broker's fees of P200,000 for the acquisition of the parcel of land. Clearing costs of P20,000 were incurred in creating an access route for the land and uprooting unwanted shrubs and trees. The land is to be held for capital appreciation. The land had the following appraised values: December 31, 2020 P8,500,000 December 31, 2021 P9,500,000 Prepare the journal entries for 2020 & 2021 if Saitama accounts for the properties under: 1. Fair value model 2. Cost model