EZ Rest Hotels Inc. purchased a hotel on January 1, 2015 for $3,700,000. The Company incurred $100,000 in legal fees relating to the transaction and agreed to assume and pay $200,000 in back taxes on the property. EZ Rest estimates that 75% of the cost is applicable to the hotel structure, and the remainder is applicable to the land.

The Company is using the revaluation model to account for its land and structures. The Company has decided to revalue its assets annually at its December 31 year end. EZ Rest uses straight-line depreciation, and estimates that the hotel structure has a 15-year useful life and the hotel will have no residual value. At year-end 2015 and 2016, the asset's fair values were as follows:

	Hotel	Land
December 31, 2015	$2,900,000	$1,160,000
December 31, 2016	$2,560,000	$1,100,000

Required (show all calculations and state any assumptions needed): Assuming EZ Rest eliminates the accumulated depreciation account in its revaluation process (that is, the company uses the asset adjustment method), prepare ALL required journal entries for 2015 and 2016 relating to this property.