A company began operations on January 1, 20x4. Purchases of property, plant and equipment during 20x4 were as follows: Residual Value Cost Jan 2, 20x4 Feb 28, 20x4 Land 1 Building 1 Equipment 1 Equipment 2 Land 2 Building 2 Equipment 3 Equipment 4 Equipment 5 $3,500,000 5,000,000 600,000 500,000 2,500,000 3,400,000 300,000 800,000 400,000 $3,500,000 500,000 100,000 60,000 2,500,000 400,000 40,000 100,000 30,000 Apr 30, 20x4 Buildings are being depreciated on the straight-line basis over an estimated useful life of 30 years and equipment is being depreciated using the diminishing balance method at the rate of 15% per year. The following transactions took place during 20x5: Purchased Equipment 6 on January 2, 20x5 for $560,000. There is no residual value. Due to the nature of this equipment, it was decided to depreciate it straight line over 20 years. Sold equipment 2 for $400,000 on June 1, 20x5. The bookkeeper was unsure on how to handle this transaction and credited the proceeds to the equipment account. Any gain or loss on sale should be recorded to administrative expenses. At December 31, 20x5, the company reassessed the useful life and residual value of Building 2 at a total of 40 years with a $200,000 residual value. The unadjusted trial balance shows a balance of $575,833 for Accumulated Depreciation as at December 31, 20x5. Required - Prepare the required journal entries at December 31, 20x5. In addition, show how the accumulated depreciation balance at December 31, 20x4 was calculated