Problem 7-4 At January 1, 2017, Wildhorse Co. reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings $61,350,000 Accumulated depreciation-equipment 54,700,000 Buildings Equipment Land 97,200,000 150,300,000 20,150,000 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 lfe and no salvage value. During 2017, the following selected transactions occurred Apr 1 Purchased land for $4.30 million. Paid $1.075 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 $210,000 cash. The equipment cost $3.30 million when originally purchased on January 1, 2009 June 1 Sold land for $5.04 million. Received $750,000 cash and accepted a 3-year, 5% note for the balance. The land cost $1.20 million when purchased on June 1, 2011- Interest on the note July 1 Dec. 31 is due annually each June 1 Purchased equipment for $2.00 million cash Retired equipment that cost $1 million when purchased on December 31, 2007.No proceeds were received Prepare a tabular summary that includes the property, plant, and equipment balances as of January 1, 2017. (Ifa transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, for the particular Asset, Liability or Equity item that was reduced.) Assets Liabilities Problem 7-4 At January 1, 2017, Wildhorse Co. reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings $61,350,000 Accumulated depreciation-equipment 54,700,000 Buildings Equipment Land 97,200,000 150,300,000 20,150,000 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 lfe and no salvage value. During 2017, the following selected transactions occurred Apr 1 Purchased land for $4.30 million. Paid $1.075 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 $210,000 cash. The equipment cost $3.30 million when originally purchased on January 1, 2009 June 1 Sold land for $5.04 million. Received $750,000 cash and accepted a 3-year, 5% note for the balance. The land cost $1.20 million when purchased on June 1, 2011- Interest on the note July 1 Dec. 31 is due annually each June 1 Purchased equipment for $2.00 million cash Retired equipment that cost $1 million when purchased on December 31, 2007.No proceeds were received Prepare a tabular summary that includes the property, plant, and equipment balances as of January 1, 2017. (Ifa transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, for the particular Asset, Liability or Equity item that was reduced.) Assets Liabilities