A small inn is purchased for $400,000 by paying $20,000 down and taking out a fifteen-year, 6%, $380,000 mortgage note from First American Bank. Principal and interest will be paid quarterly. An appraisal performed on this date indicates that the land is worth $150,000 and the remaining balance of the purchase price is attributable to the building. The owners estimate that the building will have an estimated useful life of 20 years and an estimated salvage value of $28,000.