Question

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	$	174,000			$	—
Buildings		1,450,000				327,900
Equipment		1,075,000				316,500
Automobiles and trucks		171,000				99,325
Leasehold improvements		214,000				107,000
Land improvements		—				—

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.

Depreciation is computed to the nearest month and residual values are immaterial. Transactions during 2021 and other information:

1. On January 6, 2021, a plant facility consisting of land and building was acquired from King Corp. in exchange for 24,000 shares of Cord's common stock. On this date, Cord's stock had a fair value of $40 a share. Current assessed values of land and building for property tax purposes are $148,000 and $592,000, respectively.
2. On March 25, 2021, new parking lots, streets, and sidewalks at the acquired plant facility were completed at a total cost of $186,000. These expenditures had an estimated useful life of 12 years.
3. The leasehold improvements were completed on December 31, 2017, and had an estimated useful life of eight years. The related lease, which would terminate on December 31, 2023, was renewable for an additional four-year term. On April 30, 2021, Cord exercised the renewal option.
4. On July 1, 2021, equipment was purchased at a total invoice cost of $324,000. Additional costs of $12,000 for delivery and $49,000 for installation were incurred.
5. On September 30, 2021, Cord purchased a new automobile for $12,400.
6. On September 30, 2021, a truck with a cost of $23,900 and a book value of $9,000 on date of sale was sold for $11,400. Depreciation for the nine months ended September 30, 2021, was $2,025.
7. On December 20, 2021, equipment with a cost of $16,500 and a book value of $2,950 at date of disposition was scrapped without cash recovery.

Required:

1. Please help me make a schedule analyzing the changes in each of the plant asset accounts during 2021. Do not analyze changes in accumulated depreciation and amortization.
2. For each asset category, help me make a schedule showing depreciation or amortization expense for the year ended December 31, 2021. Thanks

Answer 1

1	Schedule analysing changes in plant assets account
		Land	Buildings	Equipment	Automobiles & trucks	Leasehold improvements	Land Improvements	Total
	Balance as on 31 December 2020	$     174,000	$      1,450,000	$      1,075,000	$                   171,000	$                         214,000	$                         -	$   3,084,000
	Additions	$     192,000	$         768,000	$         385,000	$                    12,400	$                                 -	$                186,000	$   1,543,400
	Deletion	$              -	$                 -	$         (16,500)	$                   (23,900)	$                                 -	$                         -	$      (40,400)
	Balance as on 31 December 2021	$    366,000	$    2,218,000	$    1,443,500	$                 159,500	$                       214,000	$              186,000	$ 4,587,000
2	Schedule of depreciation or amortisation expense
		Land	Buildings	Equipment	Automobiles & trucks	Leasehold improvements	Land Improvements	Total
	Balance as on 31 December 2020	$              -	$         327,900	$         316,500	$                    99,325	$                         107,000	$                         -	$      850,725
	Charge for the year	$              -	$         112,775	$         128,350	$                    31,935	$                           15,286	$                  11,890	$      300,236
	Deletion	$              -	$                 -	$         (13,550)	$                   (14,900)	$                                 -	$                         -	$      (28,450)
	Balance as on 31 December 2021	$              -	$       440,675	$       431,300	$                 116,360	$                       122,286	$                11,890	$ 1,122,511

Notes :-
Depreciation on building
BV at the beginning	$ 1,122,100
Depreciation Rate	6%
Dep on the beginning	$       67,326
Building cost of Addition	$     768,000
Depreciation Rate	6%
No. of days for depreciation to be charged	360 Days
Depreciation on addition	$       45,449
Charge for the year	$    112,775
Depreciation on equipments
Cost of the Equipment	$ 1,075,000
Depreciation Rate	10%
Dep on the beginning	$     107,500
Cost of additions	$     385,000
Depreciation Rate	10%
No. of days for depreciation to be charged	184 Days
Depreciation on addition	$       19,250
Cost of Deletion	$       16,500
Depreciation Rate	10%
No. of days for depreciation to be charged	354
Depreciation on deletion	$         1,600
Charge for the year	$    128,350
Depreciation on land improvements
Cost of additions	$     186,000
Depreciation Rate	8%
No. of days for depreciation to be charged	280 Days
Charge for the year	$      11,890
Depreciation on leasehold improvements
BV of the leasehold improvements	$     107,000
Depreciation Rate	14%
Charge for the year	$      15,286
Depreciation on automobiles & trucks
Cost of the Equipment	$       71,675
Depreciation Rate	40%
Dep on the beginning	$       28,670
Cost of additions	$       12,400
Depreciation Rate	40%
No. of days for depreciation to be charged	92 Days
Depreciation on addition	$         1,240
Depreciation on deletion	$         2,025
Charge for the year	$      31,935