Company XXX owns a shopping centre that it purchased on January 1, 2021, for $6,000,000. The purchase was paid using a $4,000,000 mortgage and the remainder was paid in cash. The property qualifies as an investment property under IAS 40.

The company is using the revaluation model to account for this shopping centre and revalues them annually. Pinewood uses straight-line depreciation over the asset's 20-year useful life with no residual value.

The fair value of the building are as follows:

- December 31, 2021 is $7,000,000

- December 31, 2022 is $5,000,000

Instructions

Assuming Company XXX uses the asset adjustment (elimination) method for revaluation, prepare all required journal entries for 2021 and 2022. Round to the closest dollar.