On October 1, 20X1, Theta Corporation acquired a building for $700,000 cash. The building has a useful life of 30 years and a residual value of $70,000. Calculate the depreciation expense for the year 20X1 using the straight-line method.

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

• December 1: Paid $30,000 for building renovations.
• December 31: Sold a portion of the building for $100,000 cash. The portion sold 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.