Knicks-Knacks Co. operates out of an office building that it purchased on January 1, 1980 for $185,000. At the time of purchase, Knicks-Knacks estimated that the building had a useful life of 40 years and salvage value of $5,000. The company has a December 31 fiscal year end. The company applies straight-line depreciation method. Required: a) [ignoring part (bon January 1, 2005, Knicks-Knacks has the building appraised to have 20 years of life remaining with a revised salvage value of $2,500. Prepare the December 31, 2005 journal entry to record the amortization expense for 2005. (4 marks) (b) [ignoring part (a)) On July 1, 2004, Knicks-Knacks decides to sell the building to Rockets-R-Us for cash proceeds of $100,000. Record all necessary journal entries on July 1, 2004 relating to this transaction. (4 marks)