On January 1,2019, Mogul Ski Resort Ltd. purchased snow making equipment for $125,000 by paying a $25.000 cash down payment and issuing a note payable for the balance. The equipment had an estimated useful life of 10 years and an estimated residual value of $25,000. Mogul uses the straight-line-method of depreciation and has a December 31 year end. On October 1, 2021, the equipment was sold for $84,200 cash.