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At December 31,2025 , Indigo Corporation reported the following plant assets. During 2026, the following selected cash transactions occurred. Apr. 1 Purchased land for $3,929,200.

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At December 31,2025 , Indigo Corporation reported the following plant assets. During 2026, the following selected cash transactions occurred. Apr. 1 Purchased land for $3,929,200. May 1 Sold equipment that cost $1,071,600 when purchased on January 1, 2019. The equipment was sold for $303,620. June 1 Sold land for $2,857,600. The land cost $1,786,000. July 1 Purchased equipment for $1,964,600. Dec. 31 Retired equipment that cost $1,250,200 when purchased on December 31,2016 . No salvage value was received. Journalize the transactions. (Hint: You may wish to set up T-accounts, post beginning balances, and then post 2026 transactions.) Indigo 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. (List all debit entries before credit entries. Record entries in the order displayed in the problem statement. Credit account tities are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Equipment Gain on Disposal of Plant Assets (To record sale of equipment) June 1 Cash 2857600 Land Gain on Disposal of Plant Assets 1071600 July 1 Equipment 1964600 Cash Depreciation Expense 125020 Accumulated Depreciation-Equipment (To record depreciation on equipment retired) Deci31 Accumulated Depreciation-Equipment Record adjusting entries for depreciation for 2026. (List debit entry before credit entry. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

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