Question 1 At January 1, 2017, Sheridan Company reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings $62,950,000 Accumulated equipment 53,500,000 97,300,000 Buildings 150,350,000 Equipment Land 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: Purchased land for $5.00 million. Paid $1.250 million cash and issued a 3-year, 6% note payable for the Apr. 1. 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 May 1 January 1, 2009. June 1 Sold land for $4.92 million. Received $840,000 cash and accepted a 3-year, 5% note for the balance. The and cost $1.400 million when purchased on June 1, 2011. Interest on the note is due annually each June July 1 Purchased equipment for $2.50 million cash. Retired equipment that cost $1 million when purchased on December 31, 2007. No proceeds were Dec. 31 received