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On 1 3 February 2 0 X 5 , Reekwa Company purchased an office tower for $ 3 1 . 0 million. The office is

On 13 February 20X5, Reekwa Company purchased an office tower for $31.0 million. The office is a mixed-use property: it is owner-
occupied and includes rental units. The fair value of the building on 31 December 206 is $31.4 million and $27.9 million on 31
December 20X8.
At the time of purchase, the office tower has a remaining useful life of 25 years, and is amortized on a straight-line basis.
Required:
Should the office tower be considered property, plant, and equipment or investment property?
Property, plant, and equipment
Investment property
Assume the property is determined to be PPE, and management applies the elimination method for the revaluation model. Prepare
the required journal entries for the revaluation of the office tower in 206 and 20X8.(If no entry is required for a
transaction/event, select "No journal entry required" in the first account field.)
*Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.
Assume the property is determined to be PPE, and management applies the proportionate method for the revaluation model.
Prepare the required journal entries for the revaluation of the office tower in 20X6 and 20X8.(If no entry is required for a
transaction/event, select "No journal entry required" in the first account field.)On 13 February 20\times 5, Reekwa Company purchased an office tower for $ 31.1 million. The office is a mixed-use property: it is owneroccupied and includes rental units. The fair value of the building on 31 December 20\times 6 is $ 31.5 million and $ 28.0 million on 31 December 20\times 8. At the time of purchase, the office tower has a remaining useful life of 25 years, and is amortized on a straight-line basis. Required: 1. Should the office tower be considered property, plant, and equipment or investment property? Property, plant, and equipment Investment property 2. Assume the property is determined to be PPE, and management applies the elimination method for the revaluation model. Prepare the required journal entries for the revaluation of the office tower in 20\times 6 and 20\times 8.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)3. Assume the property is determined to be PPE, and management applies the proportionate method for the revaluation model. Prepare the required journal entries for the revaluation of the office tower in 20\times 6 and 20\times 8.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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