Question $4(15$ marks$)$

In early January $2020,$ Red Sox Corp. purchased a vineyard in southem Ontario for $ $7\mathrm{.}5$ million cash. This amount included property taxes of $ $40,000,$ of that amount, $ $30,000$ were in arrears and the balance is for the current year. Based on appraisals, the property's year$-$end fair value was $ $8\mathrm{.}2$ million at the end of $2020$ and $ $8$ million at the end of $2021.$

Other information:

$1.$ The vineyard qualifies as an investment property.

$2.$ Red Sox applies the fair value model to all its investment property.

Instructions

Prepare all required journal entries for $2020(11$ marks$)$ and $2021(4$ marks$).$