Real Estate Inc (REI) has made the decision to use the revaluation model for its land This is the only tract of land in this class REI has a 31 December year end The following are independent situations Case A REI purchased a tract of land in 20X1 for $100 million At 31 December 20X1, the land was valued at $130 million Case B REI purchased a tract of land in 20X1 for $140 million At 31 December 20X1, the land was valued at $110 million At 31 December 20X2, the land was valued at $160 million Case C REI purchased a tract of land in 20X1 for $120 million At 31 December 20X1, the land was valued at $170 million At 31 December 20X2, the land was valued at $110 million Required 1 For each case list the amounts, and direction, of the gains, gain reversals, losses, and loss reversals Also indicate whether the amounts would be recorded as other comprehensive income or in earnings (En ter all answers as positive values Enter your answers in millions ) 2 What would be different in your response to requirement 1 if the fair value model was selected by REI (Enter your answers in millions )

Question

Real Estate Inc  (REI) has made the decision to use the revaluation model for its land  This is the only tract of land in this class  REI has a 31 December year end  The following are independent situations  Case A REI purchased a tract of land in 20X1 for $100 million  At 31 December 20X1, the land was valued at $130 million  Case B REI purchased a tract of land in 20X1 for $140 million  At 31 December 20X1, the land was valued at $110 million  At 31 December 20X2, the land was valued at $160 million  Case C REI purchased a tract of land in 20X1 for $120 million  At 31 December 20X1, the land was valued at $170 million  At 31 December 20X2, the land was valued at $110 million  Required  1  For each case list the amounts, and direction, of the gains, gain reversals, losses, and loss reversals  Also indicate whether the amounts would be recorded as other comprehensive income or in earnings  (En ter all answers as positive values  Enter your answers in millions ) 2  What would be different in your response to requirement 1 if the fair value model was selected by REI  (Enter your answers in millions )

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Case A	REI purchased a tract of land in 20X1 for $100 million. At 31 December 20X1, the land was valued at $130 million.
Case B	REI purchased a tract of land in 20X1 for $140 million. At 31 December 20X1, the land was valued at $110 million. At 31 December 20X2, the land was valued at $160 million.
Case C	REI purchased a tract of land in 20X1 for $120 million. At 31 December 20X1, the land was valued at $170 million. At 31 December 20X2, the land was valued at $110 million.

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Real Estate Inc. (REI) has made the decision to use the revaluation model for its land. This is the only tract of land in this

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