Fair Value Model In February 2020, Jordan Corp. Purchased a Vineyard in Southern

question 29

Essay

Fair value model
In February 2020, Jordan Corp. purchased a vineyard in southern Ontario for $ 7.5 million cash. This amount included legal fees of $ 18,000 and property taxes of $ 40,000 (of that amount, $ 30,000 were in arrears). Based on appraisals, the property's year-end fair values were $ 8.2 million at the end of 2020, and $ 8 million at the end of 2021.
Other information:
1.The vineyard qualifies as investment property.
2.Jordan applies the fair value model to all its investment property.
Instructions
Prepare all required journal entries for 2020 and 2021.

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Definitions:

Core Activities

Core activities are the central and essential operations or functions of a business that are directly related to its main purpose and generate the majority of its revenue and profits.

Recurring Nonoperating

A financial term referring to regular income or expenses that arise from activities not related to a company's core operations.

AICPA

Stands for the American Institute of Certified Public Accountants, a professional organization that sets ethical and auditing standards for the accounting profession in the United States.

Comprehensive Income

The total change in equity for a reporting period, excluding any transactions from owners (such as dividends).