At January 1, 2018, Youngstown Limited reported the following property, plant, and equipment accounts:

Accumulated depreciation-buildings ..........................$ 62,200,000

Accumulated depreciation-equipment............................54,000,000

Buildings...........................................................................97,400,000

Equipment.......................................................................150,000,000

Land..................................................................................20,000,000

The company uses straight-line depreciation for buildings and equipment, its year end is December 31, and it makes adjusting entries annually. The buildings are estimated to have a 40-year useful life and no residual value; the equipment is estimated to have a 10-year useful life and no residual value.

During 2018, the following selected transactions occurred:

Apr. 1 Purchased land for $4.4 million. Paid $1.1 million cash and issued a three-year, 6% mortgage payable for the balance. Interest on the mortgage is payable annually each April 1.

May 1 Sold equipment for $300,000 cash. The equipment cost $2.8 million when originally purchased on January 1, 2010.

June 1 Sold land for $3.6 million. Received $900,000 cash and accepted a three-year, 5% note for the balance. The land cost $1.4 million when purchased on June 1, 2012. Interest on the note is due annually each June 1.

July 1 Purchased equipment for $2.2 million cash.

Dec. 31 Retired equipment that cost $1 million when purchased on January 1, 2009. No proceeds were received.

31 Tested land for impairment and found that its recoverable value was $20 million.

Instructions

(a) Record the above transactions.

(b) Record any adjusting entries required at December 31.

(c) Prepare the property, plant, and equipment section of the company's statement of financial position at December 31.