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Teal Mountain Assets Inc

Accounting

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Teal Mountain Assets Inc., a publicly listed company, has a building with an initial cost of $364,000. At December 31, 2020, the date of revaluation, accumulated depreciation amounted to $106,000. The fair value of the building, by comparing it with transactions involving similar assets, is assessed to be $283,800. On January 5, 2021, Teal Mountain sold the building for $278,800 cash.

Prepare the journal entries to record the sale of the building after having used the revaluation model using the proportionate method.