At January 1, 2021. Sheridan Limited reported the following property, plant, and equipment accounts: $63,200,000 Accumulated depreciation-buildings Accumulated depreciation-equipment 49.400,000 Buildings 92,700,000 Equipment 159.700.000 Land 18,600,000 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 valor During 2021. the following selected transactions occurred: Apr 1 Purchased land for $4.360,000. Paid $ 1.110,000 cash and issued a three-year, 6% mortgage payable for the hale Interact nn the mortosa i nausblennuvchanel mo Show All 1 1 USEFUL VOR During 2021, the following selected transactions occurred: Apr. 1 May 1 June 1 Purchased land for $4,360,000. Paid $1,110,000 cash and issued a three-year, 6% mortgage payable for the balance. Interest on the mortgage is payable annually each April 1. Sold equipment for $270,000 cash. The equipment cost $2.749,200 when originally purchased on January 1, 2013 Sold land for $3,497,400, Received $857 400 cash and accepted a three-year, 5% note for the balance. The land cost $1,400,000 when purchased on June 1, 2015. Interest on the note is due annually each June 1. Purchased equipment for $2,000,000 cash Retired equipment that cost $900,000 when purchased on January 1, 2012. No proceeds were received. Tested land for impairment and found that its fair value was $18,600,000 July 1 Dec 31 31 ta Date Account Titles and Explanation Debit Credit Apr1 Land 54.360.000 $3250,000 Cash $1.110,000 May 1 Depreciation Expense $91,640 Accumulated Depreciation Equipment 591.640 (To record depreciation expense) May 1 Cash $270,000 Accumulated Depreciation-Eipment 52.291000 Lesson Disposal $168.200 Show ma x U. 11 Loss on Disposal $188.200 Equipment $2.749.200 (To record loss/gain on sale of equipment) June 1 Cash $857400 Notes Receivable $2.640.000 Land $1.400,000 Galo on Disposal $2.097,400 (To record loss/gain on sale of land) July Equipment 52.000.000 Cash 52.000.000 Show b. 1/20 = July 1 Equipment $2.000.000 Cash 52.000.000 Dec 31 Depreciation Expense $90,000 Accumulated Depreciation Equipment $90,000 (To record depreciation expense) Dec 31 Accumulated Depreciation Equipment $900.000 $900,000 Equipment (To record the retirement of equipment) IT, ILA Dec 31 SA