At the beginning of the year for years ago, Cedar Valley company purchased construction equipment for $715,000 with a useful life of six years in estimated salvage value of 100,000. The company has is the straight line method of appreciation on July 3 this equipment the company uses a straight line method was treated for similar construction equipment that has a value of 80,000 the company Paid 582,000 cash and was given a trading allowance of 218,000 for the old equipment