The following transactions and adjusting entries were completed by a local delivery company called Fast Delivery. The company uses straight-line depreciation for delivery vehicles, double-declining-balance depreciation for buildings, and straight-line amortization for franchise rights. January 2 , 2015 Paid $180,000 cash to purchase a small warehouse building near the airport. The building has an estimated life of 20 years and a residual value of $3,500. July 1 , 2015 Paid $48,000 cash to purchase a delivery van. The van has an estimated useful life of five years and a residual value of $9,600. October 2 , 2015 Paid $500 cash to paint a small office in the warehouse building. October 13 , 2015 Paid $250 cash to get the oil changed in the delivery van. December 1 , 2015 Paid $82,500 cash to UPS to begin operating Fast Delivery business as a franchise using the name The UPS Store. This franchise right expires in five years. December 31 , 2015 Recorded depreciation and amortization on the delivery van, warehouse building, and franchise right. June 30 , 2016 Sold the warehouse building for $144,000 cash. (Record the depreciation on the building prior to recording its disposal.) December 31 , 2016 Recorded depreciation on the delivery van and amortization on the franchise right. Determined that the franchise right was not impaired in value.