P7-72B. (Learning Objectives 1, 2, 3: Recording PPE transactions, exchanges, and changes in useful life) Tarrier, Inc., has the following PPE accounts: Land, Buildings, and Equipment, with a separate accumulated depreciation account for each of these except land. Tarrier com- pleted the following transactions: Jan 2 Jun 30 Oct 29 Dec 31 Traded in equipment with accumulated depreciation of 64,000 (cost of 138,000) for similar new equipment with a cash cost of 179,000. Received a trade-in allowance of 73,000 on the old equipment and paid 106,000 in cash. Sold a building that had a cost of 645,000 and had accumulated deprecia- tion of 155,000 through December 31 of the preceding year. Depreciation is computed on a straight-line basis. The building has a 40-year useful life and a residual value of 285,000. Tarrier received 135,000 cash and a 350,500 note receivable. Purchased land and a building for a single price of 340,000. An indepen- dent appraisal valued the land at 108,900 and the building at 254,100. Recorded depreciation as follows: Equipment has an expected useful life of 4 years and an estimated residual value of 4% of cost. Depreciation is computed on the double-declining-balance method. Depreciation on buildings is computed by the straight-line method. The new building carries a 40-year useful life and a residual value equal to 10% of its cost