Dior Company purchased an 8-floor building as an investment on January 3, 2016 for $2,000,000 cash. The building is intended to earn rentals and for capital appreciation in the future. In addition to the purchase price, the company also paid $90,000 legal fees for acquisition of property, $10,000 taxes for title transfer and $30,000 to paint the whole building. On the date of acquisition, all eight floors were leased and the company received $150,000 for tenant deposits obligations. Based on independent appraisal, land accounted for approximately 40% of the value of the property. In valuing the property, it was also determined that the fair value of the elevator in its present condition is $180,000. The elevator is expected to have a useful life of 10 years, zero residual value and it will have to be replaced at the end of the useful life. The building is expected to have a useful life of 20 years and a residual value of $260,000.

Assume the company uses the cost model, prepare the journal entry to record the replacement of elevator on December 31, 2022. Also, assume that the new elevator costs $280,000 and the depreciation of the current year has been properly recorded.