Koh Brothers Limited acquired a factory for $54 million on June 30, 2013 to produce hospital machines and equipment. The company estimated the factory has a useful life of 25 years with $2 million in residual value at the end of its useful life. The company adopted a straight-line depreciation method for all its property, plant and equipment. The factorys market value appreciated steadily to $60 million at the end of the companys financial year, December 31, 2013. On June 30, 2014, the factory was sold for cash at $59 million.

Show the journal entries if Koh Brothers Limited account for the factory using (a) the cost method, and (b) the revaluation method.