Data Table Jan. 1 remaining with a note payable. Apr. Acquired land and communication equipment in a lump-sum purchase. Total cost was $380,000 paid in cash. An independent appraisal valued the land at $299,250 and the communication equipment at S99,750 Sold a building that cost $555,000 (accumulated depreciation of $255,000 through December 31 of the preceding year. Carney received S380,000 cash from the sale of the building. Depreciation is computed on a straight-line basis. The building has a 40-year useful life and a residual value of $75,000. Sep. 1 Dec. 31 Recorded depreciation as follows: Communication equipment is depreciated by the straight-line method over a five-year life with zero residual value. Office equipment is depreciated using the double-declining-balance method over five years with a $3,000 residual value. Print Done