On October 12, 2022, Talca Ltd. (TL), a public company, purchased a piece of equipment at a cost of $432,000. At the time of purchase, TL’s management determined that the equipment would have a useful life of six years and no residual value. Management also determined that the straight-line depreciation method should be used and that the revaluation model would be used for this class of asset. Revaluations are undertaken every three years. TL has a December 31 year end and on January 1, 2025, an appraisal indicated that the equipment had a fair value of $324,000. TL depreciates its assets monthly and all necessary depreciation entries have been made at December 31, 2024.

Required 

a. Prepare the necessary journal entry/entries related to the revaluation assuming that VITL uses the proportionate method. 

b. Prepare the necessary journal entry/entries related to the revaluation assuming that VITL uses the asset adjustment (or elimination) method.