It was September 30, 2006, fiscal year-end, and Stephen Roulet had just completed his second year of operations of Wild River Tours, a white-water rafting company that ran expeditions during the summer season from May 1 through to September 30. Roulet was in the process of evaluating his company's performance over the past two years, and he had compiled the following information on his fixed assets. FIXED ASSETS Land and Building Although the company opened on September 30, 2004, operations did not begin until May 1, 2005, when land was purchased, with cash, for $75,000. Before the land could be used by Wild River Tours, a deteriorating barn on the land was torn down at a cost of $10,000 cash, and the wood from the barn was sold for $500 cash. A building that had been purchased, with cash, for $125,000, on the same day as the land, had a life expectancy of 25 years and a salvage value of $20,000. The building was open for business year-round, as the restaurant was a popular meeting place for the surrounding community. It was amortized using the straight-line method. Bus The river was located approximately 20 kilometres from Wild River Tours' main complex; therefore, a bus was needed to carry the rafters and rafts to the river. An old school bus had been purchased May 3, 2005, for $13,000 cash, and it was estimated to have a life of 50,000 kilometres and a salvage value of $1,500. The bus had travelled 18,000 kilometres during the summer of 2005 and was stored during the winter. During the summer of 2006, the bus had travelled 8,000 kilometres before it was traded in on July 1 for a more fuel-efficient mini-bus. The new mini-bus, which had a list price of $15,000, was purchased with a trade-in allowance of $7,500 on the old bus and cash for the remainder. It was expected to have a life of