On July 1, 2020, Pascal Inc., a publicly listed company, acquired assets from Lowry Corp. On the transaction date, a reliable, independent valuator assessed the fair values of these assets as follows:

Manufacturing plant (building #1)		$500,000
Storage warehouse (building #2)		310,000

The buildings are owned by the company, and the land that the buildings are situated on is owned by the local municipality and is provided free of charge to the owner of the buildings to encourage local employment.

In exchange for the acquisition of these assets, Pascal issued 156,000 common shares. Pascals shares are thinly traded (that is, traded in relatively low volume leading to more volatile price changes than most public companies). In the most recent sale of Pascals shares on the Toronto Stock Exchange, 1,000 shares were sold for $5 per share. At the time of acquisition, both buildings were considered to have an expected remaining useful life of 10 years. Pascal uses straight-line depreciation with no residual values.

At December 31, 2020, Pascals fiscal year end, Pascal recorded the correct depreciation amounts for the six months that the assets were in use. An independent appraisal concluded that the assets had the following fair values:

Manufacturing plant (building #1)		$485,000
Storage warehouse (building #2)		265,000

At December 31, 2021, Pascal once again retained an independent appraiser and determined that the fair value of the assets was:

Manufacturing plant (building #1)		$440,000
Storage warehouse (building #2)		260,000

Instructions

Prepare the journal entries required for 2020 and 2021, assuming that the buildings are accounted for under the revaluation model (using the asset adjustment method). Depreciate assets separately and round all amounts to the nearest dollar. (6 points)