Question 1 At January 1, 2017, Sheridan Company reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings Accumulated depreciation-equipment Buildings Equipment Land $62,950,000 53,500,000 97,300,000 150,350,000 20,550,000 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 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 May 1 Purchased land for $5.00 million. Paid $1.250 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 $210,000 cash. The equipment cost $2.40 million when originally purchased on January 1, 2009 Sold land for $4.92 million. Received $840,000 cash and accepted a 3-year, 5% note for the balance. The land cost $1.40 million when purchased on June 1, 2011. Interest on the note is due annually each June June 1 July 1 Der 32 Purchased equipment for $2.50 million cash. Retired equipment that cost $1 million when purchased on December 31, 2007. No proceeds were received. Question 1 At January 1, 2017, Sheridan Company reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings Accumulated depreciation-equipment Buildings Equipment Land $62,950,000 53,500,000 97,300,000 150,350,000 20,550,000 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 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 May 1 Purchased land for $5.00 million. Paid $1.250 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 $210,000 cash. The equipment cost $2.40 million when originally purchased on January 1, 2009 Sold land for $4.92 million. Received $840,000 cash and accepted a 3-year, 5% note for the balance. The land cost $1.40 million when purchased on June 1, 2011. Interest on the note is due annually each June June 1 July 1 Der 32 Purchased equipment for $2.50 million cash. Retired equipment that cost $1 million when purchased on December 31, 2007. No proceeds were received