On January 1, the Matthews Band pays $67,000 for sound equipment. The band estimates it will use this equipment for five years and perform 200 concerts. It estimates that after five years it can sell the equipment for $2,000. During the first year, the band performs 45 concerts Compute the first-year depreciation using the straight-line method. Straight-Line Depreciation Choose Denominator Choose Numerator: Annual Depreciation Expense Depreciation expense Cala Manufacturing purchases land for $323,000 as part of its plans to build a new plant. The company pays $36,400 to tear down an old building on the lot and $53,809 to fill and level the lot. It also pays construction costs $1,218,300 for the new building and $76,903 for lighting and paving a parking area. Prepare a single journal entry to record these costs incurred by Cala, all of which are paid in cash. View transaction list Journal entry worksheet