please post the explanation also!

PHAROAH LIMITED Statement of Financial Position (Partial) December 31, 2021 Assets PropertyPlant, and Equipment Land Buildings Less Accumulated Depreciation - Buildings Equipment Less Accumulated Depreciation Equipment Total Property, Plant, and Equipment At January 1, 2021, Pharoah Limited reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings Accumulated depreciation equipment Buildings Equipment Land $60,600,000 54,800,000 88,300,000 145,300,000 20,100,000 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. 1 Purchased land for $4,190,000. Pald $1,120,000 cash and issued a three-year, 6% mortgage payable for the balance. Interest on the mortgage is payable annually each April 1. May 1 Sold equipment for $320,000 cash. The equipment cost $2,523,600 when originally purchased on January 1, 2013. June 1 Sold land for $3,749,600. Received $837,200 cash and accepted a three-year, 5% note for the balance. The land cost $1,400,000 when purchased on June 1, 2015. Interest on the note is due annually each June 1. July Purchased equipment for $2,300,000 cash. Dec. 31 Retired equipment that cost $1,000,000 when purchased on January 1, 2012. No proceeds were received Tested land for impairment and found that its fair value was $20,100,000. 1 31