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On 13 February 205, Reekwa Company purchased an office tower for $31.6 million. The office is a mixed-use property: it is owneroccupied and includes rental

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On 13 February 205, Reekwa Company purchased an office tower for $31.6 million. The office is a mixed-use property: it is owneroccupied and includes rental units. The fair value of the building on 31 December 206 is $32.0 million and $28.5 million on 31 December 208. 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 206 and 208. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the revaluation of office tower purchased for $31.6 million on 13 February 205 under elimination method. The fair value of the building on 31 December 206 is $32 million. Note: Enter debits before ciedits. On 13 February 205, Reekwa Company purchased an office tower for $31.6 million. The office is a mixed-use property: it is owneroccupied and includes rental units. The fair value of the building on 31 December 206 is $32.0 million and $28.5 million on 31 December 208. 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 fequired joumal entries for the revaluation of the office tower in 206 and 208. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the revaluation of office tower purchased for $31.6 malion on 13 February 205 under elimination method. The fair value of the bulling on 31 December 208 is $28,5 million. Note: Enter debits before credits

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