On November 1, 20X1, Theta Corporation acquired a building for $500,000 cash. The building has an estimated useful life of 30 years and no residual value. Using the straight-line method, calculate the depreciation expense for the year 20X1.

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

• December 15: Theta Corporation spent $25,000 on building renovations to improve functionality.

Furthermore, Theta Corporation provided the following information regarding its financial statements for the year 20X1:

• November 1: Building acquisition for $500,000
• December 15: Building renovations for $25,000

Required:

• Calculate the total depreciation expense for the year 20X1 for the building.
• Prepare the journal entries to record the building-related transactions for Theta Corporation during the year 20X1.