Everett Company purchased land and a modern office building on March 1, 20-1 for a combined price of $600,000.

$400,000 was paid in cash with the remainder owing on a 5%

note payable. The land had a cost of $350,000 and the building had a net book value of $100,000 on the seller's books. The land and building had fair market values of $390,000 and $210,000,