Acquisition, Depreciation, and Disposal of Assets On January 2, 2018, Dale Company purchased a building and land for $570,000. The most recent appraisal values for the building and the land are $406,000 and $174,000, respectively. The building has an estimated useful life of 25 years and a salvage value of $20,000. 1. Assuming cash transactions and straight-line depreciation, prepare journal entries to record: a. Purchase of the building and land on January 2, 2018 b. Depreciation expense on December 31, 2018 If an amount box does not require an entry, leave it blank. Jan. 2 Building Land Cash 570,000 Dec. 31 Depreciation Expense Accumulated Depreciation, Building 2. Assume that after four years the property (land and building) was sold for $470,000. Prepare the journal entry to record the sale. If an amount box does not require an entry, leave it blank. Cash 470,000 Accumulated Depreciation, Building Loss on Sale of Building and Land Building Land