Schmaltz Cable Company's balance sheet reports the following assets under Property, Plant, and Equipment: Land, Buildings, Office Furniture, Communication Equipment, and Televideo Equipment. The company has a separate accumulated depreciation account for each of these assets except land. Assume that Schmaltz Cable completed the following transactions:

{Requirements}
1. Record the transactions in Schmaltz Cable's journal.
2. How does management choose which depreciation method to use?

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2020 Jan. 4 Sold communication equipment with accumulated depreciation of $85,000 (cost of $96,000) for $18,000. Purchased new equipment for $118,000. June 30 Sold a building that had cost $495,000 and had accumulated depreciation of $255,000 through December 31 of the preceding year. Depreciation is computed on a straight- line basis. The building has a 40-year useful life and a residual value of $95,000. The company received $50,000 cash and a $250,000 note receivable. Nov. 4 Purchased used communication and televideo equipment from Rogers Cable Company Total cost was $80,000 paid in cash. An independent appraisal valued the communication equipment at $75,000 and the televideo equipment at $25,000. Depreciation is recorded as follows: Dec. 31 Equipment is depreciated by the double-diminishing-balance method over a five-year life with zero residual value. Depreciation is recorded separately on the equipment purchased on January 4 and on November 4.