Real Estate Company (REC) has a large number of apartment buildings that it holds for rent. In addition, it is holding land for capital appreciation. REC will either sell the land if the price is right or use it to build additional rental property. This land has a fair value of $ 10,000 at the beginning of 20X8. During the year, further acquisitions were made of land totaling $ 110,000. REC disposed of an old apartment building with a carrying amount of $ 80,000, for $ 120,000. At the 20X8 year- end date, the land had increased by $ 220,000, and the apartment buildings had decreased by $ 40,000 due to a downturn in the real estate market.

Required:
1. What are the options available for recording the land and apartment buildings?
2. How would the changes be accounted for during the year?