Problem 9-8A a-c (Part Level Submission) At January 1, 2018, Oriole Limited reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings Accumulated depreciation-equipment Buildings Equipment Land $67,700,000 49,400,000 90,500,000 145,400,000 20,900,000 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 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 $4,310,000. Paid $1,120,000 cash and issued a three-year, 7% mortgage payable for the balance. Interest on the mortgage is payable annually each April 1. Sold equipment for $310,000 cash. The equipment cost $2,602,800 when originally purchased on January 1, 2010. Sold land for $3,765,000. Received $942,600 cash and accepted a three-year, 5% note for the balance. The land cost $1,400,000 when purchased on June 1, 2012. Interest on the note is due annually each June 1. Purchased equipment for $2,200,000 cash. Retired equipment that cost $1,100,000 when purchased on January 1, 2009. No proceeds were received. Tested land for impairment and found that its recoverable value was $20,900,000. July 1 Dec. 31 31 Dec. 31 Depreciation Expense 110,000 Accumulated Depreciation - Equipment T 110,000 (To record depreciation expense) T Dec. 31 - Accumulated Depreciation - Equipment 100,000 T Equipment IT 1,100,000 (To record the retirement of equipment) (To record impairment loss)