Mayfield Inc. Jan 3 Sold equipment with accumulated depreciation of $ 65,000 (cost of $ 132,000) for $72,000. Purchased similar new equipment for $180,000 cash. Jun 30 Sold a building that had a cost of $ 660,000 and had accumulated depreciation of $ 135,000 through December 31 of the preceding year. Depreciation is computed using the straight-line method. The building has a 40-year useful life and a residual value of $ 220,000. Mayfield received $ 105,000 cash and a $ 414,500 note receivable. Oct 31 Purchased land and a building for a single price of $ 370,000 cash. An independent appraisal valued the land at $ 147,000 and the building at $ 273,000. Dec 31 Recorded depreciation as follows: Equipment has an expected useful life of ten years and an estimated residual value of 12% of cost. Depreciation is computed using the double-declining-balance method. Depreciation on buildings is computed using the straight-line method. The new building carries a 40- year useful life and a residual value equal to 20% of its cost. Intangibles: 1) Big Timber Inc acquires 5,000 acres of mature timberland for $14,000,000 in 2019. After harvesting, the land is anticipated to have a fair market value of $1,500,000. In 2019, Big Timber harvests 800 acres and sales the timber from 350 acres for $1,100,000. Record the purchase and all subsequent transactions. What is the gross profit percentage on the product that was sold? 2) I Buy Companies acquired a competitor for a purchase price in excess of the FMV of the individual assets. It recorded goodwill of $5,000,000. I Buy plans to sell this company is 5 years. Record the current year's goodwill amortization / expense. 3) Record the entry by Drug Co. for $3,500,000 research and development of a drug that makes all students accounting experts