P9.2 (LO 2, 3, 5), AP At December 31, 2025, Arnold Corporation reported the following plant assets. During 2026, the following selected cash transactions occurred. Apr. 1 Purchased land for $2,200,000. May 1 Sold equipment that cost $600,000 when purchased on January 1, 2019. The equipment was sold for $170,000. June 1 Sold land for $1,600,000. The land cost $1,000,000. July 1 Purchased equipment for $1,100,000. Dec. 31 Retired equipment that cost $700,000 when purchased on December 31, 2016. No salvage value was received. Instructions a. Journalize the transactions. (Hint: You may wish to set up T-accounts, post beginning balances, and then post 2026 transactions.) Arnold uses straight-line depreciation for buildings and equipment. 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. Update depreciation on assets disposed of at the time of sale or retirement. b. Record adjusting entries for depreciation for 2026 . c. Prepare the plant assets section of Arnold's balance sheet at December 31,2026 . Partial Balance Sheet December 31, 2026 Land \begin{tabular}{|l|l|l|l|} \hline Land & & & \\ \hline Cash & & & \\ \hline & & & \\ \hline 12/31/23 Bal. & & \\ \hline \end{tabular} Buildings Equipment 12/31/26 Bal. Accumulated Depreciation - Buildings \begin{tabular}{|l|l|l|l|} \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & 12/31/26 Bal. & \\ \cline { 1 - 4 } & & \multicolumn{2}{|l|}{} \\ & & \multicolumn{2}{|c|}{} \\ & & & \end{tabular} Accumulated Depreciation - Equipment \begin{tabular}{|l|l|l|l|} \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & 12/31/26Bal. & \\ \cline { 1 - 4 } & & & \\ \hline & & & \\ \hline \end{tabular}