Question: s corp acquires its only building on jan 1 year...
S corp acquires its only building on Jan 1, year 1, at a cost of $4,000,000. The building has a 10-
year life, zero residual value, and is depreciated on a straight-line basis. The company adopts the revaluation model in accounting for buildings. On Dec 31, Year1, the fair value of the building is $3,780,000. On Dec 31, year 2, Fair value is $3,000,000. On Dec 31, year 3, Fair value is $3,200,000 and January 2, year 4, the company sells the building for $3,500,000.