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Question: Moon Inc., a publicly listed company, has a building with an initial cost of $400,000. At December 31, 2020, the date of revaluation, accumulated depreciation amounted to $110,000. The fair value of the building, by comparing it with transactions involving similar assets, is assessed to be $330,000.
1. Use the information from 1 above. On January 5, 2021, Moon sold the building for $325,000 cash. Prepare the journal entries to record the sale of the building after having used
a. the revaluation model using the proportionate method.
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