The independent appraiser felt that the useful life of the shopping mall was 20 years and its residual value was $14 million. Note that the mall's rental income and expenses would be the same under both options, and thus can be omitted from the analysis for thisexercise. (a) Prepare the necessary journal entries for 2024, 2025, and 2026 if it decides to treat the shopping mall as an investment property under IAS 40: Use fair value model. (Credit account titles are outomatically indented when the amount is entered. Do not indent manually. If no entry is recuired, select "No Entry" for the coccount tittes and enter ofor the amounts. List all debit entries before credit entries. Recond journal entries in the order presented in the problem. Enter amounts in dollars instead of million dollars.) under IAS 40: Use fair value model. (Credit account titles are outomatically indented when the amount is entered. Do not indent manually. If no entry is requined, select "No Entry' for the account titles and enter O for the amounts. List alf debit entries before credit entries Record joumat entries in the order presented in the problem. Enter amounts in dollars instead of million dollars) Sheridan Holdings inc. a publicly listed company in Canada, ventured into construction of a mega shopping mall in Edmonton, which is rated ss the tariget thopping mall in North America: The company's board of directors, after much market research, decided that instead of selling the shopping mall to a local investor who had approached them several times with excellent offersthat he steadily increased during the year of construction, the company would hold this property for the purposes of capital appreciation and earning rental income from mall tenants. The construction of the mall ended on December 31, 2022. Sheridan Holdings retained the services - of a real estate company to find and attract many import ant retailers to rent space in the shopping malt, The shopping malt was fulty occupled spon alter construction was completed. According to the company's accounting department, the total construction cost of the shopping mall was $60 million. The company used an independent appraiser to determine the malls fair value annually. According to the appraisal, the fair values of the shopping mall at December 31, 2023, and at each subsequent year end were: 2023$60 million 2024$71 million 2025$77 million 2026571 milition The independent appraiser felt that the useful life of the shopping mall was 20 years and its residual value was $14million. Note that the malis rental income and expenses would be the same under both options, and thusean be omittedf
