FAIR VALUE MODEL Snow Ltd. acquired a shopping center costing $5.4 million in exchange for cash on May 1, 2020 and will classify this purchase as an investment property (rather than a capital asset). At the time of purchase the land accounted for 25% of the purchase price, with the remainder attributable to the building itself. The shopping center will be operated for the next 15 years after which time it is anticipated it could be sold for an estimated $4.5 million. Snow Ltd. has chosen to apply the Fair Value Model to account for this investment property. At December 31, 2020 the shopping center was appraised at $6.0 million. The journal entry to record the purchase of the shopping center would involve: Select one: a. A debit to Land for $1,350,000 O b. A debit to Building for $4,050,000 OC. A debit to Investment in Rental property for $5,400,000 d. A credit to a mortgage liability for $5,400,000 e. Both (a) and (b) The depreciation expense recorded on the shopping center at December 31, 2020 would be: Select one a so b. $30,000 c. $40,000 d. $45,000 e. $60,000 The income statement for the year-ended December 31, 2020 would disclose: Select one: a. Gain in value of Investment Property of $1,950,000 reported in net income. O b. Gain in value of Investment Property of $600,000 reported in net income. O c. Loss in value of Investment Property of $600,000 reported in other comprehensive income. d. Loss in value of Investment Property of $600,000 reported in net income. O e. Gain in value of Investment Property of $600,000 reported in other comprehensive income