BE9-4 Rainbow Company purchased land, a building, and equipment on January 2, 2014, for $850,000. Record basket purchase. The company paid $170,000 cash and signed a mortgage note payable for the remainder. Management's (SO 1) AP best estimate of the value of the land was $352,000; of the building. $396,000; and of the equipment, 5132,000. Record the purchase. BE9-5 Butters Company acquires equipment at a cost of $42,000 on January 3, 2014, Management esti- Calculate straight-line mates the equipment will have a residual value of $6,000 at the end of its four-year useful life. Assume the depreciation. (SO2) AP company uses the straight-line method of depreciation. Calculate the depreciation expense (a) for each year of the equipment's life, and (b) in total over the equipment's life. Butters has a December 31 fiscal year end. BE9-6 Refer to the data