3. Headland Company purchased office equipment for $20,700, terms 2/10, n/30. Because the company intended to take the discount, it made no entry until it paid for the acquisition. The entry was: Equipment 20,700 Cash 20,286 Purchase Discounts 414 4. Sage Inc. recently received at zero cost land from the Village of Cardassia as an inducement to locate its business in the Village. The appraised value of the land is $32,400. The company made no entry to record the land because it had no cost basis. 5. Pronghorn Company built a warehouse for $720,000. It could have purchased the building for $888,000. The controller made the following entry. Buildings 888,000 Cash 720,000 Profit on Construction 168,000