with a separate Accumulated Depreciation account for each depreciable asset. During 2018, Janie Mills ble.) i More Info Jan. 1 Purchased office equipment, $120,000. Paid $74,000 cash and financed the remainder with a note payable. Apr. 1 Acquired land and communication equipment in a lump-sum purchase. Total cost was $360,000 paid in cash. An independent appraisal valued the land at $283,500 and the communication equipment at $94,500. Sep. 1 Sold a building that cost $555,000 (accumulated depreciation of $255,000 through December 31 of the preceding year). Janie Mills Associates received $360,000 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 Dec 31 Recorded depreciation as follows: Communication equipment is depreciated by the straight-line method over a five-year life with zero residual value. Office equipment is depreciated using the double-declining-balance method over five years with a $3,000 residual value Print Done Clear Date Debit Credit Sep. 1 Accounts and Explanation Depreciation Expense Bukling Accumulated Depreciation Building 8,000 8,000 To record depreciation on building Now record the sale of the building on September 1 Date Debit Credit Sep. 1 Accounts and Explanation Cash Accumulated Depreciation Building Building Gain on Disposal To record sale of building 360,000 263,000 555,000 68,000 Dec. 31: Record depreciation on the communication equipment Communication equipment is depreciated by the straight-line method over a five-year life with zero residual Date Accounts and Explanation Debit Credit Dec. 31 Depreciation Expense_Communication Equipment Accumulated Depreciation Communication Equipment