P10.5 (LO 2, 3, 5), AP At December 31, 2022, Grand Company reported the following as plant assets.

Land		$4,000,000
Buildings	$28,500,000
Less: Accumulated depreciationbuildings	12,100,000	16,400,000
Equipment	48,000,000
Less: Accumulated depreciationequipment	5,000,000	43,000,000
Total plant assets		$63,400,000

During 2023, the following selected cash transactions occurred.

April	1	Purchased land for $2,130,000.
May	1	Sold equipment that cost $750,000 when purchased on January 1, 2019. The equipment was sold for $450,000.
June	1	Sold land purchased on June 1, 2013 for $1,500,000. The land cost $400,000.
July	1	Purchased equipment for $2,500,000.
Dec.	31	Retired equipment that cost $500,000 when purchased on December 31, 2013.

Instructions

1. Journalize the transactions. (Hint: You may wish to set up T-accounts, post beginning balances, and then post 2023 transactions.) The company uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 50-year 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.

2. Record adjusting entries for depreciation for 2023.

   b. Depreciation ExpenseBuildings $570,000; Equipment $4,800,000

3. Prepare the plant assets section of Grands balance sheet at December 31, 2023.

   c. Total plant assets $61,760,000

Record disposals.