Problem 9-4A At January 1, 2017, Pharoah Company reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings Accumulated depreciation equipment Buildings Equipment $62,000,000 52,750,000 97,400,000 150,300,000 23,650,000 The company uses straight-line depreciation for buildings and equipment, its year and is December 31, and it makes adjusting entries 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. 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. Sold equipment for $320,000 cash. The equipment cost $3.36 million when originally purchased on January 1, 2009. Sold land for $5.58 million. Received $600,000 cash and accepted a 3-year, 5% note for the balance. The land cost $1.30 million when purchased on Dune 1, 2011. Interest on the note is due annually each June 1. Purchased equipment for $2.60 million cash. Retired equipment that cost $1 million when purchased on December 31, 2007. No proceeds were received. July 1 Dec. 31 (ul) Problem 9-4A At January 1, 2017, Pharoah Company reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings Accumulated depreciation equipment Buildings Equipment $62,000,000 52,750,000 97,400,000 150,300,000 23,650,000 The company uses straight-line depreciation for buildings and equipment, its year and is December 31, and it makes adjusting entries 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. 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. Sold equipment for $320,000 cash. The equipment cost $3.36 million when originally purchased on January 1, 2009. Sold land for $5.58 million. Received $600,000 cash and accepted a 3-year, 5% note for the balance. The land cost $1.30 million when purchased on Dune 1, 2011. Interest on the note is due annually each June 1. Purchased equipment for $2.60 million cash. Retired equipment that cost $1 million when purchased on December 31, 2007. No proceeds were received. July 1 Dec. 31 (ul)