Sandhill Company purchased land and a building on April 1, 2019, for $368,400. The company paid $110,400 in cash and signed a 5% note payable for the balance. At that time, it was estimated that the land was worth $144,000 and the building, $224,400. The building was estimated to have a 25-year useful life with a $34,500 residual value. The company has a December 31 year end, prepares adjusting entries annually, and uses the straight-line method for buildings; depreciation is calculated to the nearest month. The following are related transactions and adjustments during the next three years. 2019 Dec. 31 2020 Recorded annual depreciation. 31 Paid the interest owing on the note payable. Feb. 17 Paid $220 to have the furnace cleaned and serviced. Dec. 31 Recorded annual depreciation. 31 Paid the interest owing on the note payable. 31 The land and building were tested for impairment. The land had a recoverable amount of $115,100 and the building, $234