The financial statements for Cayman Ltd at 30 June 2023, presented a building with a cost of \($450\) 000 and accumulated depreciation amounting to \($220\) 000.

The entity has adopted the straight-line method of accounting for depreciation on the building. When initially purchased, management determined the building would have a useful life of 40 years and a residual value of \($50\) 000.

On 1 January 2026 Cayman Ltd completed structural improvements and internal renovations amounting to \($230\) 000, both increasing the productive capacity and remaining useful life of the building for 30 years. There is no change to the residual value. Ignore GST.

Required

(a) Calculate the number of years the building had been depreciated to 30 June 2023.

(b) Prepare the general journal entry/ies to record the cost of the structural improvements and renovations on 1 January 2026.

(c) Prepare the general journal entry to record the building’s depreciation expense for the year ended 30 June 2026.