Lab $7-$ Chapter $10$

Question $4$ of $9$

$\frac{-}{18}$

Current Attempt in Progress

The property, plant, and equipment accounts for Sheffield Company held the following opening balances on January $1,2023($the first day of Sheffield's fiscal year$)$:

Land

$$488,000$

Equipment

$809,000$

Accumulated Depreciation$-$Equipment $,143,000$

Machinery $,442,000$

Accumulated Depreciation$-$Machinery $,167,000$

The following transactions took place during $2023($assume all transactions took place on January $1)$:

a$.$ Sheffield Company paid $$19,400$ related to the machinery and $$7,900$ related to the equipment for maintenance to keep the assets in normal working order.

b$.$ Equipment with an original cost of $$37,800$ and accumulated depreciation of $$29,400$ was traded in on some new equipment. The new equipment had a fair value of $$48,400,$ and Sheffield was given a trade in allowance of $$4,400$ for the old equipment.

c$.$ Sheffield Company made an agreement with GRN Ltd$.$ to exchange two similar plots of land. Sheffield's land had an original cost of $$488,000$ and a fair value of $$717,000.$ GRN$\text{'}$s land had an original cost of $$515,500$ and a fair value of $$753,600.$ Sheffield also paid $$36,600$ in cash to GRN as part of the transaction. The exchange lacks commercial substance.

d$.$ Sheffield paid $$68,000$ on a major upgrade to some of the equipment that significantly increased the economic life of the equipment.