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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

  • 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.

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