On October 1, 20X1, Beacon Corporation acquired a building for $800,000 cash. The building has a useful life of 40 years and a residual value of $80,000. Calculate the depreciation expense for the year 20X1 using the straight-line method.

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

• December 1: Paid $40,000 for building renovations.
• December 31: Sold a portion of the building for $150,000 cash. The portion sold had a carrying amount of $180,000.

Required:

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