Question

In: Accounting

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 $ 171,000 $
Buildings 1,300,000 324,900
Machinery and equipment 925,000 313,500
Automobiles and trucks 168,000 96,325
Leasehold improvements 208,000 104,000
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 21,000 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 $142,000 and $568,000, respectively.

On March 25, 2018, new parking lots, streets, and sidewalks at the acquired plant facility were completed at a total cost of $168,000. 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 $321,000. Additional costs of $12,000 for delivery and $46,000 for installation were incurred.

On August 30, 2018, Cord purchased a new automobile for $12,100.

On September 30, 2018, a truck with a cost of $23,600 and a book value of $8,400 on date of sale was sold for $11,100. Depreciation for the nine months ended September 30, 2018, was $1,890.

On December 20, 2018, a machine with a cost of $15,000 and a book value of $2,875 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.

Solutions

Expert Solution


Related Solutions

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, 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 $ 175,000 $ — 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 — — 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 $ 173,000 $ — Buildings 1,400,000 326,900 Machinery and equipment 1,025,000 315,500 Automobiles and trucks 170,000 98,325 Leasehold improvements 212,000 106,000 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 182,000              ___ buildings 1 850 000       335 900 Machinery and equipment 1 475 000       324 500 Automobiles and truck 179 000       107 325 Leasehold improvements 230 000        115 000 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;...
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 $ 179,000 $ — Buildings 1,700,000 332,900 Machinery and equipment 1,325,000 321,500 Automobiles and trucks 176,000 104,325 Leasehold improvements 224,000 112,000 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 $ 181,000 $ — Buildings 1,800,000 334,900 Machinery and equipment 1,425,000 323,500 Automobiles and trucks 178,000 106,325 Leasehold improvements 228,000 114,000 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 $ 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 $ 170,000 $ — Buildings 1,250,000 323,900 Machinery and equipment 875,000 312,500 Automobiles and trucks 167,000 95,325 Leasehold improvements 206,000 103,000 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 $ 180,000 $ — Buildings 1,750,000 333,900 Machinery and equipment 1,375,000 322,500 Automobiles and trucks 177,000 105,325 Leasehold improvements 226,000 113,000 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...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT