Application of the revaluation model
Aden Motels Inc. owns a motel that it had purchased on January 1, 2020, for $ 1.5 million cash and is accounted for in a separate account, classified as "Structures." The company is using the revaluation model to account for its structures and revalues them annually. Aden uses straight-line depreciation over the asset's 15-year useful life with no residual value.
The asset's fair value was equal to its book value on Dec. 31, 2020, and was $ 1,450,000 on Dec. 31, 2021.
Instructions
Assuming Aden uses the asset adjustment (elimination) method for revaluation, prepare all required journal entries for 2020 and 2021.

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The Answer of Application of the revaluation model
Aden Motels Inc. owns a motel that it had purchased on January 1, 2020, for $ 1.5 million cash and is accounted for in a separate account, classified as "Structures." The company is using the revaluation model to account for its structures and revalues them annually. Aden uses straight-line depreciation over the asset's 15-year useful life with no residual value.
The asset's fair value was equal to its book value on Dec. 31, 2020, and was $ 1,450,000 on Dec. 31, 2021.
Instructions
Assuming Aden uses the asset adjustment (elimination) method for revaluation, prepare all required journal entries for 2020 and 2021.

Application of the Revaluation Model