In February 2020, Muskoka Corp. purchased a golf course in southern Ontario for $7.5 million cash. This amount included legal fees of $18,000 and property taxes of $40,000 (of that amount, $30,000 were in arrears). Based on appraisals, the property's year-end fair values were $8.2 million at the end of 2020, and $8 million at the end of 2021.

This golf course qualifies as an investment property. In addition, Muskoka Corp. applies the fair value model to all its investment property.

Required

1.Prepare all journal entries for 2020 and 2021.