A company began operations on January 1, 2020. Purchases of property, plant and equipment during 2020 was as follows: Jan 1, 2020 April 30, 2020 Land 1 Building 1 Equipment 1 Land 2 Building 2 Equipment 2 Cost 2,800,000 4,700,000 $500,000 4,200,000 5,350,000 800,000 Residual Value 2,800,000 470,000 100,000 4,200,000 650,000 60,000 Buildings are being depreciated on a straight-line basis over an estimated useful life of 25 years and equipment is being depreciated using the diminishing balance method at the rate of 15% per year. The following transactions took place during 2021: Purchased Equipment 3 on February 28, 2021 for $195,000. There is no residual value. For this piece of equipment, it was determined due to the nature of the equipment to depreciate straight line over 15 years. Sold equipment 1 for $365,000 on July 1, 2021. The bookkeeper was unsure how to handle the transaction and credited the proceeds to the equipment account. At December 31, 2021, the company reassessed the useful life and residual value of Building 2 at a total of 30 years with a $550,000 residual value. Required: A) Calculate the accumulated depreciation balance at December 31, 2020. B) Prepare the required journal entries at December 31, 2021 to account for the 2021 depreciation and adjusting journal entry to correct the recording of the sale of the equipment during the year.