Problem 3-5. What expense items are associated with the following transactions? When and how is the income statement affected by each one? a. Purchased equipment for $40,000 that has a useful life of five years. b. Purchased land for $135,000. c. Purchased $7,000 worth of inventory on December 19. On December 27 sold one- half of the inventory for $6,000. On January 8, sold the remainder for $6,200. The company uses the calendar year for its fiscal year. d. On January 1, subscribed to a magazine for two years. The cost was $72.