On October 1, 2011, the company has a building with a cost of $375,000 and accumulated depreciation of $225,000. The company commits to a plan to sell the building by February 1, 2012. On October 1, 2011, the building has an estimated selling price of $145,000, and it is estimated that selling costs associated with the disposal of the building will be $9,000. On December 31, 2011, the estimated selling price of the building has increased to $170,000, with estimated selling costs remaining at $9,000. Make the journal entries necessary to record
(1) The initial classification of the building as held for sale on October 1, 2011, and
(2) Any adjustment necessary on December 31, 2011. Remember that no depreciation expense is recognized once an asset is classified as held for sale.