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At January 1, 2017, Ivanhoe Company reported the following property, plant, and equipment accounts:

Accumulated depreciation?buildings $61,800,000

Accumulated depreciation?equipment 53,200,000

Buildings 97,600,000

Equipment 150,900,000

Land 21,000,000

The company uses straight-line depreciation for buildings and equipment, its year-end is December 31, and it makes adjustments 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 Purchased land for $4.00 million. Paid $1.000 million cash and issued a 3-year, 6% note payable for the balance. Interest on the note is payable annually each April 1.

May 1 Sold equipment for $270,000 cash. The equipment cost $3.90 million when originally purchased on January 1, 2009.

June 1 Sold land for $4.20 million. Received $690,000 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 1.

July 1 Purchased equipment for $2.80 million cash.

Dec. 31 Retired equipment that cost $1 million when purchased on December 31, 2007. No proceeds were received.

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