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At December 31, 2017, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances as follows:

Category	Plant Asset				Accumulated Depreciation and Amortization
Land	$	166,000			$	—
Buildings		1,050,000				319,900
Machinery and equipment		675,000				308,500
Automobiles and trucks		163,000				91,325
Leasehold improvements		198,000				99,000
Land improvements		—				—
​Depreciation methods and useful lives: Buildings—150% declining balance; 25 years. Machinery and equipment—Straight line; 10 years. Automobiles and trucks—150% declining balance; 5 years, all acquired after 2014. Leasehold improvements—Straight line. Land improvements—Straight line. Depreciation is computed to the nearest month and residual values are immaterial. Transactions during 2018 and other information: On January 6, 2018, a plant facility consisting of land and building was acquired from King Corp. in exchange for 16,000 shares of Cord's common stock. On this date, Cord's stock had a fair value of $60 a share. Current assessed values of land and building for property tax purposes are $198,000 and $462,000, respectively. On March 25, 2018, new parking lots, streets, and sidewalks at the acquired plant facility were completed at a total cost of $138,000. These expenditures had an estimated useful life of 12 years. The leasehold improvements were completed on December 31, 2014, and had an estimated useful life of eight years. The related lease, which would terminate on December 31, 2020, was renewable for an additional four-year term. On April 30, 2018, Cord exercised the renewal option. On July 1, 2018, machinery and equipment were purchased at a total invoice cost of $316,000. Additional costs of $11,000 for delivery and $41,000 for installation were incurred. On August 30, 2018, Cord purchased a new automobile for $11,600. On September 30, 2018, a truck with a cost of $23,100 and a book value of $7,400 on date of sale was sold for $10,600. Depreciation for the nine months ended September 30, 2018, was $1,665. On December 20, 2018, a machine with a cost of $12,500 and a book value of $2,750 at date of disposition was scrapped without cash recovery. Required: 1. Prepare a schedule analyzing the changes in each of the plant asset accounts during 2018. Do not analyze changes in accumulated depreciation and amortization. 2. For each asset category, prepare a schedule showing depreciation or amortization expense for the year ended December 31, 2018.

CORD COMPANY Analysis of Changes in Plant Assets For the Year Ending December 31, 2018 Balance Balance 12/31/17 Increase Decrease 12/31/18 Land $166,000 ? $0 ? Land improvements 0 138,000 0 138,000 Buildings 1,050,000 ? 0 ? Machinery and equipment 675,000 ? ? ? Automobiles and trucks 163,000 11,600 23,100 151,500 Leasehold improvements 198,000 0 0 ? $2,252,000 $869,600 $23,100 $289,500

CORD COMPANY Depreciation and Amortization Expense For the Year Ending December 31, 2018 Land Improvements Buildings Machinery and equipment Automobiles and trucks Leasehold improvements Total depreciation and amortization expense for 2018 $0

Answer 1

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1. Analyzing the changes in each of the plant asset:
Working:
a.	Fair Value of Shares	16000*60	$       960,000
Allocation of $960000 to Land and Building:
	Price	%	Fair Value	Allocation
Land	$                                                           198,000	30%	$       960,000	$       288,000
Building	$                                                           462,000	70%	$       960,000	$       672,000
Total	$                                                           660,000			$       960,000
b.	Land Improvement	$       138,000
c.	No Impact
d.	Machiner Cost:
	Purchase Price	$       316,000
	Delivery	$          11,000
	Installation	$          41,000
	Total	$       368,000
e.	Automobile	$          11,600
f.	Truck Sold	$          23,100
g.	Machine Scrapped	$          12,500
CORD COMPANY
Analysis of Changes in Plant Assets
For the Year Ending December 31, 2018
	Balance			Balance
	12/31/17	Increase	Decrease	12/31/18
Land	$                                                           166,000	$       288,000	$                   -	$       454,000
Land improvements	$                                                                       -	$       138,000	$                   -	$       138,000
Buildings	$                                                        1,050,000	$       672,000	$                   -	$   1,722,000
Machinery and equipment	$                                                           675,000	$       368,000	$          12,500	$   1,030,500
Automobiles and trucks	$                                                           163,000	$          11,600	$          23,100	$       151,500
Leasehold improvements	$                                                           198,000	$                   -	$                   -	$       198,000
Total	$                                                        2,252,000	$    1,477,600	$          35,600	$   3,694,000
2. Amortization and Depreciation:
Land Improvement:
Value	$                                                           138,000
Life	12 Year
Depreciation for	9 Months
Depreciation	138000*1/12*9/12	$            8,625
Building:
25 Year Life,150% Decline	1.50*1/25	6%
For Full Year	(1050000-319900)*6%	$          43,806
New Building-Pur in January	672000*6%	$          40,320
Total		$          84,126
Machinery and Equipment:
10 Year SLM
For Full Year	(675000-12500)/10	$          66,250
Addition Pur in Jul	368000*1/10*6/12	$          18,400
Deletion	12500*1/10	$            1,250
Total		$          85,900
Automobiles and Trucks:
55 Year Life,150% Decline	1.50*1/5	30%
For Full Year	(163000-91325)-((23100-(15700-1665))
	62610*30%	$          18,783
Addition-Pur in Aug	11600*30%*4/12	$            1,160
Deletion	given	$            1,665
Total		$          21,608
Leashold:(	(198000-99000)/(8-3)	$          19,800
CORD COMPANY
Depreciation and Amortization Expense
For the Year Ending December 31, 2018
Land Improvements	$                                               8,625
Buildings	$                                              84,126
Machinery and equipment	$                                              85,900
Automobiles and trucks	$                                              21,608
Leasehold improvements	$ 19,800
Total depreciation and amortization expense for 2018	$                                            220,059