on march 31, 2021, the herzog company purchased a factory complete with vehicles and equipment. the allocation of the total purchase price of $1,070,000 to the various types of assets along with estimated useful lives and residual values are as follows: asset cost estimated residual value estimated useful life (in years) land $ 135,000 n/a n/a building 570,000 none 20 equipment 170,000 12% of cost 8 vehicles 195,000 $ 15,000 10 total $ 1,070,000 on june 29, 2022, equipment included in the march 31, 2021, purchase that cost $107,000 was sold for $87,000. herzog uses the straight-line depreciation method for building and equipment and the double-declining-balance method for vehicles. partial-year depreciation is calculated based on the number of months an asset is in service.