New Horizon Property Company builds and manages real estate used as short term hotels and long-term apartments. Because of the difference in purpose, New Horizon depreciates different properties under different methods. Below is a table detailing New Horizon's properties: Cost Useful Life Depreciation Method Salvage Value $1,000,000 $35,000,000 10 years Double-declining-bala nce Property Purchase Date Hotel 1 Jan 2010 Building Apartment 1 Jul 2001 Building 1 Apartment 1 Jan 2005 Building 2 $20,000,000 $4,000,000 16 years Straight-line $25,000,000 $1,000,000 10 years Straight-line New Horizon experiences financial difficulties and must sell Apartment Building 1 to raise cash. New Horizon sells Apartment Building 1 for $8,500,000 cash on 31 December 2010. Required: (1) Calculate the Book Value of Apartment Building 1 immediately before the sale (2 points) (2) Calculate the Gain/Loss on the sale of Apartment Building 1 (1 points) Prepare all journal entries related to Apartment Building 1 during 2010 (3 points) ( (4) Prepare the adjusting entries to record the depreciation of the Hotel Building and Apartment Building 2 at the end of 2010 (separately) (4 points)