Problem 7-4 At January 1, 2017, Oriole Company reported the following property, plant, and equipment accounts: Accumulated depreciationbuildings $63,650,000 Accumulated depreciationequipment 55,300,000 Buildings 97,500,000 Equipment 151,000,000 Land 22,900,000 The company uses straight-line depreciation for buildings and equipment, its year-end is December 31, and it makes adjustments 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 2017, the following selected transactions occurred: Apr. 1 Purchased land for $4.10 million. Paid $1.025 million cash and issued a 3-year, 6% note payable for the balance. Interest on the note is payable annually each April 1. May 1 Sold equipment for $260,000 cash. The equipment cost $2.82 million when originally purchased on January 1, 2009. June 1 Sold land for $5.60 million. Received $800,000 cash and accepted a 3-year, 5% note for the balance. The land cost $1.60 million when purchased on June 1, 2011. Interest on the note is due annually each June 1. July 1 Purchased equipment for $2.80 million cash. Dec. 31 Retired equipment that cost $1 million when purchased on December 31, 2007. No proceeds were received.