ABC Company purchased a building for $500,000, paying $100,000 in cash and signing a mortgage payable for the remaining balance. The building has an estimated useful life of 20 years and no salvage value. Requirements: a. Record the purchase of the building by ABC Company. b. Calculate the annual depreciation expense using the straight-line method. c. Prepare the journal entry to record the depreciation expense for the first year. d. Determine the book value of the building at the end of the second year. e. Analyze the impact of depreciation on the income statement and balance sheet.