On July 1, 2017, Sheridan Company received $1,210,000 cash as compensation for the forced sale (condemnation) of the companys land and building. The state planned to use the property to build a new on-ramp for a nearby highway. The land and building cost $550,000 and $935,000, respectively, when they were acquired. At July 1, 2017, the accumulated depreciation relating to the building amounted to $412,500. On December 1, 2017, Sheridan purchased a piece of replacement property for cash. The new land cost $396,000, and the new building cost $1,177,000.

Prepare the journal entries to record the transactions on July 1 and December 1, 2017.