PART 1: Clarke Inc owns an investment property with the following data:
Cost - January 1, 2015 $775,000
Fair value - December 31, 2015 $705,000
Fair value - December 31, 2018 $725,000
Fair value - December 31, 2020 $690,000
Assume that Clarke decides to apply the fair value model. prepare the journal entry to record the initial investment.
Also prepare the journal entries, if any, required dates indicated above.
PART 2: Clarke Inc. also has fixed assets, with a selected account listed below at December 31, 2019
Building				350,000
Less: Accumulated Depreciation				45,000
				305,000
Clarke uses straight-line depreciation for its building (remaining useful life is 10 years, no residual value).
Clarke decides to adopt the revaluation model for its building effective December 31, 2019. on this date, an independent appraiser assessed the fair value of the building to be $320,000
a) prepare the journal entry required, if any, to revalue the building as at December 31, 2019
b) prepare the journal entry to record depreciation expense for the year ended December 31, 2020 for the building