At December 31, 2017, Arnold Corporation reported the following plant assets: Land $ 3,000,000
Buildings $26,500,000
Less: Accumulated depreciation buildings 11,925,000 14,575,000
Equipment 40,000,000
Less: Accumulated depreciation equipment 5,000,000 35,000,000
Total plant assets $52,575,000

During 2018, the following selected cash transactions occurred.

Apr. 1 Purchased land for $2,200,000
May 1 Sold equipment that cost $600,000 when purchased on January 1, 2011. The equipment was sold for $170,000
June 1 Sold land for $1,600,000. The land cost $1,000,000
July 1 Purchased equipment for $1,100,000
Dec. 31 Retired equipment that cost $700,000 when purchased on December 31, 2008. No salvage value was received

Journalize the transactions. Arnold 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 is estimated to have a 10-year useful life and no salvage value. Update depreciation on assets disposed of at the time of sale or retirement. (Record entries in the order displayed in the problem statement. If no entry is required, record "No Entry" for the account titles and enter 0 for the amounts.)

Record the adjusting entries for depreciation for 2018.

Prepare the plant assets section of Arnold's balance sheet at December 31, 2018. (Hint: You may want to set up T accounts, post beginning balances, and then post 2018 transactions.)