At January 1, 2022, Cullumber Company reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings Accumulated depreciation equipment Buildings Equipment Land $63,050,000 54,800,000 97,600,000 150,800,000 22,250,000 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 salvage value; the equipment is estimated to have a 10-year useful life and no salvage value. During 2022, the following selected transactions occurred: Apr. 1 May 1 June 1 Purchased land for $4.00 million. Paid $1.000 million cash and issued a 3-year, 6% note payable for the balance. Interest on the note is payable annually each April 1. Sold equipment for $240,000 cash. The equipment cost $3.36 million when originally purchased on January 1, 2014. Sold land for $5.70 million. Received $780,000 cash and accepted a 3-year, 5% note for the balance. The land cost $1.80 million when purchased on June 1, 2016. Interest on the note is due annually each June 1. Purchased equipment for $2.20 million cash. Retired equipment that cost $1 million when purchased on December 31, 2012. No proceeds were received. July 1 Dec. 31 Date Account Titles and Explanation Debit Credit April 1 Land 4,000,000 Cash 1,000,000 Mortgage Payable 3,000,000 May 1 Depreciation Expense 112,000 Accumulated Depreciation Equipment 112,000 (To record depreciation expense) May 1 Cash 240,000 Accumulated Depreciation-Equipment 2,800,000 Loss on Disposal of Plant Assets 320,000 Equipment 3,360,000 (To record sale of equipment) June 1 Cash 780,000 Notes Receivable 4,920,000 Land 1,800,000 Gain on Disposal of Land 3.900.000 (lo record sale of equipment) June 1 Cash 780,000 Notes Receivable 4,920,000 Land 1,800,000 Gain on Disposal of Land 3,900,000 uly 1 Equipment 2,200,000 Cash 2,200,000 Dec. 31 Depreciation Expense 100,000 Accumulated Depreciation-Equipment 100,000 (To record depreciation expense) Dec. 31 Accumulated Depreciation-Equipment 1,000,000 Equipment 1,000,000 (To record disposal of equipment) Your answer is partially correct. Record any adjusting entries for depreciation required at December 31. (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 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31 Depreciation Expense 2,440,000 Accumulated Depreciation-Buildings 2,440,000 (To record depreciation expense for buildings) Dec. 31 Depreciation Expense 8,224,000 Accumulated Depreciation Equipment 8,224,000 (To record depreciation expense for equipment) e Textbook and Media List of Accounts Attempts: 5 of 5 used Prepare the property, plant, and equipment section of the company's statement of financial position at December 31. (List Property, Plant and Equipment in order of Land, Buildings and Equipment.) CULLUMBER COMPANY Statement of Financial Position (Partial) $ $ $ e Textbook and Media