On 28 April 20X2, Peele Realty purchased land and building for $6.55 million and $4.69 million, respectively. The company uses the revaluation model for the land and building. Assume that the land is revalued annually. The building is revalued every two years. The fair value of the land at the end of 20X2, 20X3 and 20X4 was $6.58 million, $6.28 million and $6.75 million. The fair value of the building at the end of 20X3 was $5.05 million. The building is amortized on a straight-line basis and has a 25-year useful life. Peele takes a full year of depreciation in the year acquired. Required: 1. Prepare the journal entries under the revaluation model for the land in 20X2, 20X3 and 20X4. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) > Answer is not complete. General Journal No Date 1 31 December 20X2 Land OCI: Gain on revaluation of Land 2 31 December 20X2 P&L: Loss on revaluation OCI: Gain reversal 3 31 December 20X4 Land P&L: Loss reversal Debit Credit 30,000 30,000 300,000 300,000 470,000 470,000 x 2. Prepare the journal entries under the revaluation model for the building in 20X3, using: a. The proportionate method b. The elimination method (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Date 1 31 December 20X3 Building Accumulated depreciation OCI: Gain on revaluation Answer is not complete. General Journal 2 31 December 20X4 Depreciation expense Accumulated depreciation Debit Credit 219,565 219,565 3 31 December 20X3 Accumulated depreciation 735,200 OCI: Loss on revaluation 735,200 x Journal entry worksheet < 1 2 3 Record the $6.55 million land purchased on 28 April 20X2 if the fair value of the land at the end of 20X2 was $6.58 million. The company uses the revaluation model. Assume that the land is revalued annually. Note: Enter debits before credits. Date 31 December 20X2 Land General Journal OCI: Gain on revaluation of Land Debit Credit > Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 Record the gain or loss on revaluation of land if the fair value of the land at the end of 20X3 was $6.28 million. Note: Enter debits before credits. Date 31 December 20X2 General Journal Debit Credit P&L: Loss on revaluation OCI: Loss on revaluation of Land Record entry Clear entry View general journal > Journal entry worksheet < 1 2 3 Record the gain or loss on revaluation of land if the fair value of the land at the end of 20X4 was $6.75 million. Note: Enter debits before credits. General Journal Debit Credit Date 31 December Land 20X4 P&L: Loss reversal Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 Record the $4.69 million building purchased on 28 April 20X2 if the fair value of the building at the end of 20X3 was $5.05 million under proportionate method. The company uses the revaluation model. The building is revalued every two years. Note: Enter debits before credits. Date 31 December Building 20X3 General Journal Accumulated depreciation OCI: Gain on revaluation Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 Record the depreciation expense on the building purchased under proportionate method. The building is amortized on a straight-line basis and has a 25-year useful life. The company takes a full year of depreciation in the year acquired. Note: Enter debits before credits. Date General Journal 31 December 20X4 Depreciation expense Accumulated depreciation Debit Credit 219,565 219,565 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 Record the $4.69 million building purchased on 28 April 20X2 if the fair value of the building at the end of 20X3 was $5.05 million under elimination method. The company uses the revaluation model. The building is revalued every two years. Note: Enter debits before credits. Date 31 December General Journal Accumulated depreciation 20X3 OCI: Loss on revaluation Debit Credit 735,200 735,200 View general journal Record entry Clear entry