At January 1, 2012, Youngstown Limited reported the following property, plant, and equipment accounts:

Accumulated depreciation-buildings...............$ 62,200,000

Accumulated depreciation-equipment................54,000,000

Buildings...................................................97,400,000

Equipment................................................150,000,000

Land.........................................................20,000,000

The company uses straight-line depreciation for buildings and equipment, and its year end is December 31. 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. Interest on the notes (described below) is due annually on the anniversary date of the issue.

During 2012, the following selected transactions occurred:

Apr. 1Purchased land for $4.4 million. Paid $1.1 million cash and issued a three-year, 6% note for the balance.

May 1Sold equipment for $300,000 cash. The equipment cost $2.8 million when originally purchased on January 1, 2004.

June 1Sold land for $3.6 million. Received $900,000 cash and accepted a three-year, 5% note for the balance. The land cost $1.4 million when purchased on June 1, 2006.

July 1Purchased equipment for $2.2 million cash. Dec. 31Retired equipment that cost $1 million when purchased on December 31, 2002.

Instructions

(a) Record the above transactions.

(b) Record any adjusting entries required at December 31.

(c) Prepare the property, plant, and equipment section of the company's statement of financial position at December 31, 2012.