In: Accounting
The plant asset and accumulated depreciation accounts of Pell
Corporation had the following balances at December 31,
2020:
Plant Asset | Accumulated Depreciation |
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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:
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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