At December 31, 2017, Grand Company reported the following as plant assets.

Land 4,000,000

Building 28,500,000

Less: Accumulated depreciation buildings 12,100,000 16,400,000

Equipment 48,000,000

Less: Accumulated depreciation equipment 5,000,000 43,000,000

Total plant assets 63,400,000

During 2018, the following selected cash transactions occurred.

April 1 Purchased land for $2,130,000

May 1 Sold equipment that cost $75,000 when purchased on January 1, 2014. The equipment was sold for $450,000.

June 1 Sold land purchased on June 1, 2008 for $1,500,000. The land cost $400,000.

July 1 Purchased equipment for $2,500,000.

Dec. 31 Retired equipment that cost $500,000 when purchased on December 31, 2008. The company received no proceeds related to salvage.

Instructions:

Journalize the above transactions. The company uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 50-year life and no salvage value. The equipment is estimated to have a 10-year life and no salvage value. Update depreciation on assets disposed of at the time of sale or retirement.

Record adjusting entries for depreciation for 2018.

Prepare the plant assets section of Grands balance sheet at December 31, 2018.