ABC Company acquires its only building on January 1, Year 1, at a cost of $4,000,000. The building has a 20-year life, zero residual value, and is depreciated on a straight-line basis. The company adopts the revaluation model in accounting for buildings. On December 31, Year 2, the fair value of the building is $3,780,000. The company eliminates accumulated depreciation against the building account at the time of revaluation. The companys accounting policy is to reverse a portion of the revaluation surplus account related to increased depreciation expense. On January 2, Year 4, the company sells the building for $3,500,000.
Required: 1-Determine the amounts to be reflected in the balance sheet related to this building for Years 14 in the following table. (Use parentheses to indicate credit amounts.)
Date	Cost	Accumulated depreciation	Carrying Amount	Revaluation Surplus	Income	Retained Earnings
January 1, Year 1	4,000,000		4,000,000
December 31, Year 1
December 31, Year 2
December 31, Year 2
Balance
December 31, Year 3
Balance
Sale, Jan 2, Year 4
Balance
Required #2- Complete Journal entries to account for the building under the revaluation model for Year 1-4.

ABC Company acquires its only building on January 1 , Year 1 , at a cost of $4,000,000. The building has a 20 -year life, zero residual value, and is depreciated on a straight-line basis. The company adopts the revaluation model in accounting for buildings. On December 31 , Year 2 , the fair value of the building is $3,780,000. The company eliminates accumulated depreciation against the building account at the time of revaluation. The company's accounting policy is to reverse a portion of the revaluation surplus account related to increased depreciation expense. On January 2 , Year 4 , the company sells the building for $3,500,000. Required: 1-Determine the amounts to be reflected in the balance sheet related to this building for Years 1-4 in the following table. (Use parentheses to indicate credit amounts.) \begin{tabular}{|l|r|r|r|r|r|r|r|r|} \hline Date & Cost & Accumulateddepreciation & Carrying Amount & Revaluation Surplus & Income & \\ \hline January 1, Year 1 & 4,000,000 & & 4,000,000 & & \\ \hline December 31, Year 1 & & & & & \\ \hline December 31, Year 2 & & & & & \\ \hline December 31, Year 2 & & & & & \\ \hline Balance & & & & & \\ \hline December 31, Year 3 & & & & & \\ \hline Balance & & & & & \\ \hline Sale, Jan 2, Year 4 & & & & & \\ \hline Balance & & & & & & \\ \hline \end{tabular}