Use the above information for the following problems:

Jan. 1 Purchased office equipment, $115,000. Paid $78,000 cash and financed the remainder with a note payable Acquired land and communication equipment in a lump-sum purchase. Total cost was $410,000 paid in cash. An independent appraisal valued the land at $322,875 and the communication equipment at $107,625 Sold a building that cost $540,000 (accumulated depreciation of $275,000 through December 31 of the preceding year). Whitney Plumb Associates received $390,000 cash from the sale of the building. Depreciation is computed on a straight-line basis The building has a 40-year useful life and a residual value of $75,000 Recorded depreciation as follows Communication equipment is depreciated by the straight-line method over a five-year life with zero residual value Apr. 1 Sep. 1 Dec. 31 Office equipment is depreciated using the double-declining-balance method over five years with a $5,000 residual value