On July 1, 20X1, Xi Corporation acquired a building for $600,000 cash. The building has a useful life of 30 years and a residual value of $60,000. Calculate the depreciation expense for the year 20X1 using the straight-line method.

Additionally, Xi Corporation made the following transactions during 20X1:

• October 1: Paid $30,000 for building renovations.
• December 1: Exchanged a portion of the building for land with a fair value of $100,000. The portion exchanged had a carrying amount of $120,000.

Required:

• Calculate the total depreciation expense for the year 20X1.
• Prepare journal entries for the building-related transactions.