Chapter 3 learning activity . Olivia purchased equipment for $10,000and she paid $500 for delivery and installation. Later she paid $5000for a complete over haul that increased the life of the equipment. She has taken a total of $12,000 depreciation on the equipment. (Accept as correct ). This year, she sold the equipment for $4,000. The purchaset also assumed Olivias note payable to the bank for $1,500