On January 1, 2020, Surfing Corporation purchased land and a building for a new surf shop. To pay for this acquisition, Surfing issued an installment loan to the seller. The installment loan requires annual payments of $3 million for the next 10 years starting on December 31, 2020. These payments are based on a contractual interest rate of 5.15% and note face value of $23 million. The property was appraised at a fair value of $16.95 million ($10 million for the land and $6.95 for the building). Surfing uses straight-line method for depreciation and estimates $1.95 million salvage value for the building at the end of its 20-year useful life.Prepare Surfings journal entries for the land, building, and note payable on the following dates.

January 1, 2020:

December 31, 2020