More Info -X Purchased office equipment, $110,000. Paid $75,000 cash and financed the remainder with a note payable. Acquired land and communication equipment in a lump-sum purchase. Total cost was $420,000 paid in cash. An independent appraisal valued the land at $330,750 and the communication equipment at $110,250. Sold a building that cost $540,000 (accumulated depreciation of $240,000 through December 31 of the preceding year). Janie Mills Associates received $360,000 cash from the sale of the building. Depreciation is computed on a straight-line basis. The building has a 40-year useful life and a residual value of $60,000. Recorded depreciation as follows: Communication equipment is depreciated by the straight-line method over a five-year life with zero residual value. Jan. 1 Apr. 1 Sep. 1 Dec. 31 Office equipment is depreciated using the double-declining-balance method over five years with a $5,000 residual value. Print Done