Problem 9-2AAt December 31, 2014, Navaro Corporation reported the following plant assets.Land$ 4,668

Problem 9-2AAt December 31, 2014, Navaro Corporation reported the following plant assets.Land$ 4,668,000Buildings$28,850,000DateAccount Titles and ExplanationLess: Accumulated depreciation—buildings18,555,300EquipmentLandApril 1Less: Accumulated depreciation—equipmentDebit10,294,70062,240,0003,423,2007,780,000Total plant assets CashCredit54,460,000$69,422,7003,423,200During 2015, the following selected cash transactions occurred.May 1Apr.May11JuneJulyDec.1131Depreciation ExpePurchased land for $3,423,200.Sold equipment that cost $933,600 when purchased on January 1, 2008. Theequipmentwassoldfor $264,520.AccumulatedDepSold land for $2,489,600. The land cost $1,556,000.Purchasedequipmentfor $1,711,600.(To recorddepreciationon equipment sold)Retired equipment that cost $1,089,200 when purchased on December 31, 2005. Nosalvage Cashvalue was received.AccumulatedNavaroDepJournalize the transactions.uses straight-line depreciation for buildings and equipment.The buildings are estimated to have a 40-year useful life and no salvage value; the equipment isestimated to have a 10-year useful life and no salvage value. Update depreciation on assetsdisposed of at theEquipmtime ofentsale or retirement. (Record entries in the order displayed in the933,600problem statement. Credit account titles are automatically indented whenamount isentered. Do not indent manually.)Gain on Disposal1,556,000SHOW LIST OF ACCOUNTSLINK TO TEXTRecord adjusting entries for depreciation for 2015. (Credit account titles are automaticallyindented when amount is entered. Do not indent manually.)Date. Account Titles andExplanationDebitDec.SHOW LIST OF ACCOUNTS31LINK TO TEXT31(To record depreciation onbuildings.)(To record depreciation on equipment retired)CreditPrepare the plant assets section of Navaro’s balance sheet at December 31, 2015. (Hint: Youmay wish to set up T accounts, post beginning balances, and then post 2015 transactions.) (ListPlant Assets in order of Land, Building and Equipment.)NAVARO CORPORATIONPartial Balance SheetDecember 31, 2015Plant Assets$Land$BuildingsLess:EquipmentLess:$Total Assets