Journal Entries for Plant Assets During the first few days of the year, Coast Company entered into the following transactions: Purchased a parcel of land with a building on it for $900,000 cash. The building, which will be used in operations, has an estimated useful life of 25 years and a salvage value of $60,000. The assessed valuations for property tax purposes show the land at $80,000 and the building at $720,000 2Paid $31,200 for the construction of an asphalt parking lot for customers. The parking lot is expected to last 12 years and has no salvage value. 3 Paid $25,000 for the construction of a new entrance to the building Purchased store equipment, paying the invoice price (including seven percent sales tax) of $78,760 in cash. The estimated useful life of the equipment is eight years, and the salvage value is $6,000. 5 Paid $240 freight on the new equipment 6 Paid $1,650 to repair damages to floor caused when the store equipment was accidentally dropped as it was moved into place 7 Paid $55 for an umbrela holder to place inside front door (customers may place wet umbrellas in the holder). The holder is expected to last 20 years