Merton Company purchased a building on January 1, 2015, at a cost of $369,000. Merton estimated that its life would be 25 years and its residual value would be $9,000. On January 1, 2016, the company made several expenditures related to the building. The entire building was painted and floors were refinished at a cost of $21,000. A federal agency required Merton to install additional pollution control devices in the building at a cost of $48,000. With the new devices, Merton believed it was possible to extend the life of the building by six years. In 2017, Merton altered its corporate strategy dramatically. The company sold the building on April 1, 2017, for $397,000 in cash and relocated all operations to another state.