Question
In: Accounting
The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December...
The plant asset and accumulated depreciation accounts of Pell
Corporation had the following balances at December 31,
2020:
| Plant Asset | Accumulated Depreciation |
||||||
| Land | $ | 320,000 | $ | 0 | |||
| Land improvements | 171,000 | 39,000 | |||||
| Building | 1,440,000 | 320,000 | |||||
| Equipment | 1,098,000 | 375,000 | |||||
| Automobiles | 144,000 | 109,000 | |||||
Transactions during 2021 were as follows:
- On January 2, 2021, equipment were purchased at a total invoice cost of $230,000, which included a $4,900 charge for freight. Installation costs of $21,000 were incurred.
- On March 31, 2021, a small storage building was donated to the company. The person donating the building originally purchased it three years ago for $19,000. The fair value of the building on the day of the donation was $14,000.
- On May 1, 2021, expenditures of $44,000 were made to repave parking lots at Pell's plant location. The work was necessitated by damage caused by severe winter weather. The repair doesn't provide future benefits beyond those originally anticipated.
- On November 1, 2021, Pell acquired a tract of land with an existing building in exchange for 10,000 shares of Pell’s common stock that had a market price of $32 per share. Pell paid legal fees and title insurance totaling $20,000. Shortly after acquisition, the building was razed at a cost of $29,000 in anticipation of new building construction in 2022.
- On December 31, 2021, Pell purchased a small storage building by giving $13,750 cash and an old automobile purchased for $15,000 in 2014. Depreciation on the old automobile recorded through December 31, 2021, totaled $11,250. The fair value of the old automobile was $3,450.
Required:
For each asset classification, prepare a schedule showing
depreciation for the year ended December 31, 2021, using the
following depreciation methods and useful lives:
Land improvements—Straight line; 15 years.
Building—150% declining balance; 20 years.
Equipment—Straight line; 10 years.
Automobiles—Units-of-production; $0.50 per mile
Depreciation is computed to the nearest month and no residual
values are used. Automobiles were driven 35,000 miles in 2021.
(Do not round intermediate calculations and round your
final answers to 2 decimal places.)
|
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Solutions
ekkarill92 answered 1 year agoRelated Solutions
The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December...
The plant asset and accumulated depreciation accounts of Pell
Corporation had the following balances at December 31, 2017: Plant
Asset Accumulated Depreciation Land $ 350,000 $ 0 Land improvements
180,000 45,000 Building 1,500,000 350,000 Machinery and equipment
1,158,000 405,000 Automobiles 150,000 112,000 Transactions during
2018 were as follows: On January 2, 2018, machinery and equipment
were purchased at a total invoice cost of $260,000, which included
a $5,500 charge for freight. Installation costs of $27,000 were
incurred. On March 31,...
The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December...
The plant asset and accumulated depreciation accounts of Pell
Corporation had the following balances at December 31,
2017:
Plant Asset
Accumulated
Depreciation
Land
$
350,000
$
0
Land improvements
180,000
45,000
Building
1,500,000
350,000
Machinery and equipment
1,158,000
405,000
Automobiles
150,000
112,000
Transactions during 2018 were as follows:
On January 2, 2018, machinery and equipment were purchased at a
total invoice cost of $260,000, which included a $5,500 charge for
freight. Installation costs of $27,000 were incurred.
On March 31,...
The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December...
The plant asset and accumulated depreciation accounts of Pell
Corporation had the following balances at December 31,
2017:
Plant Asset
Accumulated
Depreciation
Land
$
375,000
$
0
Land improvements
187,500
50,000
Building
1,550,000
375,000
Machinery and equipment
1,208,000
430,000
Automobiles
155,000
114,500
Transactions during 2018 were as follows:
On January 2, 2018, machinery and equipment were purchased at a
total invoice cost of $285,000, which included a $6,000 charge for
freight. Installation costs of $32,000 were incurred.
On March 31,...
The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December...
The plant asset and accumulated depreciation accounts of Pell
Corporation had the following balances at December 31, 2015:
Plant Asset
Accumulated
Depreciation
Land
$
480,000
$
—
Land
improvements
245,000
58,000
Building
2,150,000
363,000
Machinery and
equipment
1,184,000
418,000
Automobiles
215,000
125,000
Transactions during
2016 were as follows:
a.
On January 2, 2016, machinery and equipment were purchased at a
total invoice cost of $325,000, which included a $6,800 charge for
freight. Installation costs of $40,000 were incurred.
b.
On...
The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December...
The plant asset and accumulated depreciation accounts of Pell
Corporation had the following balances at December 31, 2015:
PLANT ASSET
ACCUM. DEPRECIATION
Land
$365,000
$0
Land Impovements
184,500
48,000
Building
1,530,000
365,000
Machinery & Equipment
1,188,000
420,000
Automobiles
153,000
113,500
a. On January 2, 2016, machinery and equipment were purchased at
a total invoice cost of $275,000, which included a $5,800 charge
for freight. Installation costs of $30,000 were incurred.
b. On March 31, 2016, a machine purchased for $61,000...
The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December...
The plant asset and accumulated depreciation accounts of Pell
Corporation had the following balances at December 31,
2017:
Plant Asset
Accumulated
Depreciation
Land
$
345,000
$
0
Land improvements
178,500
44,000
Building
1,490,000
345,000
Machinery and equipment
1,148,000
400,000
Automobiles
149,000
111,500
Transactions during 2018 were as follows:
On January 2, 2018, machinery and equipment were purchased at a
total invoice cost of $255,000, which included a $5,400 charge for
freight. Installation costs of $26,000 were incurred.
On March 31,...
At December 31, 2017, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances...
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
$
184,000
$
—
Buildings
1,950,000
337,900
Machinery and equipment
1,575,000
326,500
Automobiles and trucks
181,000
109,325
Leasehold improvements
234,000
117,000
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...
At December 31, 2017, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances...
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
$ 168,000 $ — Buildings 1,150,000 321,900 Machinery and equipment
775,000 310,500 Automobiles and trucks 165,000 93,325 Leasehold
improvements 202,000 101,000 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...
At December 31, 2020, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances...
At December 31, 2020, Cord Company's plant asset and accumulated
depreciation and amortization accounts had balances as follows:
Category
Plant Asset
Accumulated Depreciation
and Amortization
Land
$
168,000
$
—
Land improvements
—
—
Buildings
1,150,000
321,900
Equipment
775,000
310,500
Automobiles and trucks
165,000
93,325
Leasehold improvements
202,000
101,000
Depreciation methods and useful lives:
Buildings—150% declining balance; 25 years.
Equipment—Straight line; 10 years.
Automobiles and trucks—200% declining balance; 5 years, all
acquired after 2017.
Leasehold improvements—Straight line.
Land improvements—Straight line....
On December 31, 2010, Praxar Company’s plant asset and accumulated depreciation and amortization accounts had balances...
On December 31, 2010, Praxar Company’s plant asset and
accumulated depreciation and amortization accounts had balances as
follows: Category Plant Asset Accumulated Depreciation and
Amortization Land $ 175,000 $ 0 Buildings 1,500,000 328,900
Machinery and equipment 1,125,000 317,500 Automobiles and trucks
172,000 100,325 Leasehold improvements 216,000 108,000 Land
improvements 0 0 Depreciation 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 2007. Leasehold improvements—Straight line....
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