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Gretta Chung Associated surveys American eating habits. the company’s accounts include Land, Buildings, Office Equipment, and Communication Equipment, with a separate Accumulated Depreciation account for each asset. During 2014, Gretta Chung completed the following transactions:jan 1 Purchased office equipment, &119,000. Paid $80,000 cash and financed the remaining with a note payable.April 1 Acquired land and communication equipment in a lump-sum purchase. Total cost was $270,000 paid in cash. An independent appraisal valued the land at $212,625 and the coommunication equipment at $70,875.Sept. 1 Sold a building that cost $555,000(accumulated depreciation of $255,000 through December 31 of the preceding year). Chung received $370,000 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.De. 31 Recorded depreciation as follows:Communication equipment is depreciated by the straight line method over a five year life with zeor residual value.Office equipment is depreciated using the double-declining balance method over five years with $2000 residual value.
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