2.) Record the following journal entries in journal: 2017 Jan. 1 Purchased equipment for $40,000 cash. July 1 Purchased a building for $90,000 cash. Dec. 31 Record depreciation for both assets. Use straight line depreciation. Equipment has salvage value of $4,000 and a 10 yr. estimated life. Building has a salvage value of $4,000 20 yr. estimated life. 2018 June 30 Sold the equipment for $24,000 cash. (remember to record depreciation first.)