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On January 1, 2019, Sweet Corporation acquires a building at a cost of $270,000. The building is expected to have a 30-year life and no residual value. The asset is accounted for using the proportionate revaluation method and revaluation is carried out every two years. On December 31, 2020, the fair value of the building is appraised at $264,600 and on December 31, 2022 its fair value is $234,000.
Required
Problem 1: Prepare the appropriate journal entries for December 31, 2020 and December 31, 2022. Assume depreciation has already been properly recorded.
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