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On November 1, 20X1, Kappa Corporation acquired a building for $300,000 cash. The building has a useful life of 20 years and a residual value

  • On November 1, 20X1, Kappa Corporation acquired a building for $300,000 cash. The building has a useful life of 20 years and a residual value of $30,000. Calculate the depreciation expense for the year 20X1 using the straight-line method.

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

    • December 1: Paid $15,000 for building renovations.

    Required:

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

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