At January 1, 2021, Sunland Limited reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings $59,500,000 Accumulated depreciation-equipment 57,100,000 Buildings 102,500,000 Equipment Land 152,600,000 20,600,000 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 value. During 2021, the following selected transactions occurred: Apr. May 1 1 June 1 July 1 Dec. 31 31 Purchased land for $4,790,000. Paid $1,040,000 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 $330,000 cash. The equipment cost $2,576,700 when originally purchased on January 1, 2013. Sold land for $3,275,700. Received $838,500 cash and accepted a three-year, 5% note for the balance. The land cost $1,300,000 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 $20,600,000. Date Sunland Limited Journal Entries Account Titles and Explanation Debit Credit $4,790,000 1-Apr Land Cash Mortgage Payable (To record purchase of land) 1-May Depreciation expense Accumulated Depreciation-Equipment (To record depreciation expense) 1-May Cash Accumulated Depreciation-Equipment Loss on disposal Equipment (To record loss/gain on sale of equipment) 1-Jun Cash Notes Receivable Gain on disposal Land (To record loss/gain on sale of land) 1-Jul Equipment Cash (To record purchase of equipment) $85,890 Calculation $1,040,000 $3,750,000 4790000-1040000 2576700/10 years*4/12 $85,890 (Jan 1 to May 1 for 4 months) $330,000 $2,147,250 $99,450 $2,576,700 2576700/10 years*8 years+85890 (Dep from 2013-2021 for 8 years) $838,500 $2,437,200 3275700-838500 $1,975,700 3275700-1300000 $1,300,000 $2,000,000 $2,000,000 31-Dec Depreciation expense Accumulated Depreciation-Equipment (To record depreciation expense) 31-Dec Accumulated Depreciation-Equipment Equipment (To record retirement of equipment) 31-Dec Impairment Loss Land (To record impairment loss) $90,000 $90,000 $900,000 $900,000 900000/10 years $3,490,000 (20600000+4790000-1300000)-20600000 $3,490,000 Record any adjusting entries required at December 31. (List all debit entries before credit entries. Credit account titles are automatically indented when the 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. Round answers to O decimal places, e.g. 5,275.) Date Account Titles and Explanation Dec. 31 Debit Credit Dec. 31 (To record depreciation expense on buildings) Dec. 31 (To record depreciation expense on equipment) Dec. 31 (To record interest expense) (To record interest income)