Problem 9-8A a-c (Part Level Submission) At January 1, 2018, Ivanhoe Limited reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings Accumulated depreciation-equipment Buildings Equipment $60,900,000 53,800,000 96,400,000 146,000,000 21,100,000 Land 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 2018, the following selected transactions occurred: Apr. May June 1 1 1 Purchased land for $4,490,000. Paid $1,180,000 cash and issued a three-year, 6% mortgage payable for the balance. Interest on the mortgage is payable annually each April 1. Sold equipment for $270,000 cash. The equipment cost $2,578,200 when originally purchased on January 1, 2010. Sold land for $3,536,300. Received $853,100 cash and accepted a three-year, 5% note for the balance. The land cost $1,600,000 when purchased on June 1, 2012. Interest on the note is due annually each June 1. Purchased equipment for $2,100,000 cash. Retired equipment that cost $900,000 when purchased on January 1, 2009. No proceeds were received. Tested land for impairment and found that its recoverable value was $21,100,000. July 1 Dec. 31 31 (b) Your answer is partially correct. Try again. Record any adjusting entries required at December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit Dec. 31 Depreciation Expense 2410000 2410000 | Accumulated Depreciation - Buildings (To record depreciation expense on buildings) Dec. 31 Depreciation Expense 14533120 Accumulated Depreciation - Equipment 14533120 (To record depreciation expense on equipment) Dec. 31 Interest Expense 148950 148950 Interest Payable (To record interest expense) Dec. 31 Interest Receivable 78260 1 Interest Revenue 78260 (To record interest revenue) (c) Your answer is partially correct. Try again. Prepare the property, plant, and equipment section of the company's statement of financial position at December 31. (List Property, plant and Equipment in order of Land, Building and Equipment.) IVANHOE LIMITED Statement of Financial Position (Partial), December 31, 2018 Assets Property, Plant, and Equipment I Land 23,990,000 Buildings 96400000 T Less s VII Accumulated Depreciation - Buildings ! 63310000 T 33090000 Equipment 144621800 Less VIJAccumulated Depreciation - Equipment 21,313,580 123,308,220 Total Property, Plant, and Equipment 180,388,220