At December 31, 2014, Navaro Corporation reported the following plant assets.

Land		$3,000,000
Buildings	$26,500,000
Less: Accumulated depreciationbuildings	11,925,000	14,575,000
Equipment	40,000,000
Less: Accumulated depreciationequipment	5,000,000	35,000,000
Total plant assets		$52,575,000

During 2015, the following selected cash transactions occurred.

Apr.	1	Purchased land for $2,200,000.
May	1	Sold equipment that cost $600,000 when purchased on January 1, 2008. The equipment was sold for $170,000.
June	1	Sold land for $1,600,000. The land cost $1,000,000.
July	1	Purchased equipment for $1,100,000.
Dec.	31	Retired equipment that cost $700,000 when purchased on December 31, 2005. No salvage value was received.

Instructions

(a)

Journalize the transactions. Navaro uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 40-year useful life and no salvage value; the equipment is estimated to have a 10-year useful life and no salvage value. Update depreciation on assets disposed of at the time of sale or retirement. (Hint: You may wish to set up T-accounts, post beginning balances, and then post 2015 transactions.)

(b)	Record adjusting entries for depreciation for 2015.

(c)

Prepare the plant assets section of Navaro's balance sheet at December 31, 2015.

Tot. plant assets

$50,037,500