Problem 11-3 Depreciation methods; partial periods Chapters 10 and 11 [LO11-2] 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, 2018, a small storage building was donated to the company. The person donating the building originally purchased it three years ago for $25,000. The fair value of the building on the day of the donation was $17,000. On May 1, 2018, expenditures of $50,000 were made to repave parking lots at Pell's plant location. The work was necessitated by damage caused by severe winter weather. On November 1, 2018, 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 $38 per share. Pell paid legal fees and title insurance totaling $23,000. Shortly after acquisition, the building was razed at a cost of $35,000 in anticipation of new building construction in 2019. On December 31, 2018, Pell purchased a small storage building by giving $15,250 cash and an old automobile purchased for $18,000 on January 1, 2017. Depreciation on the old automobile recorded through December 31, 2018, totaled $13,500. The fair value of the old automobile was $3,750. Required: For each asset classification, prepare a schedule showing depreciation for the year ended December 31, 2018, using the following depreciation methods and useful lives: Land improvementsStraight line; 15 years. Building150% declining balance; 20 years. Machinery and equipmentStraight line; 10 years. Automobiles150% declining balance; 3 years. Depreciation is computed to the nearest month and no residual values are used. (Do not round intermediate calculations and round your final answers to 2 decimal places.)

Problem 11-3 Depreciation methods; partial periods Chapters 10 and 11 [LO11-2] The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2017 Accumulated Plant Asset Depreciation $ 350,000$ Land Land improvements Building Machinery and equipment Automobiles 180,000 1,500,000 1,158,000 150,000 45,000 350,000 405,000 112,00e Transactions during 2018 were as follows a. On January 2, 2018, machinery and equipment were purchased at a total invoice cost of $260,000, which included a $5,500 b. On March 31, 2018, a small storage building was donated to the company. The person donating the building originally purchased it c. On May 1, 2018, expenditures of $50,000 were made to repave parking lots at Pell's plant location. The work was necessitated by d. On November 1, 2018, Pell acquired a tract of land with an existing building in exchange for 10,000 shares of Pell's common stock charge for freight. Installation costs of $27,000 were incurred three years ago for $25,000. The fair value of the building on the day of the donation was $17,000 damage caused by severe winter weather. that had a market price of $38 per share. Pell paid legal fees and title insurance totaling $23,000. Shortly after acquisition, the building was razed at a cost of $35,000 in anticipation of new building construction in 2019 e. On December 31, 2018, Pell purchased a small storage building by giving $15,250 cash and an old automobile purchased for $18,000 on January 1, 2017. Depreciation on the old automobile recorded through December 31, 2018, totaled $13,500. The fair value of the old automobile was $3,750 Required: For each asset classification, prepare a schedule showing depreciation for the year ended December 31, 2018, using the following depreciation methods and useful lives Land improvements-Straight line; 15 years Building-150% declining balance; 20 years Machinery and equipment-Straight line; 10 years Automobiles-150% declining balance; 3 years Depreciation is computed to the nearest month and no residual values are used. (Do not round intermediate calculations and round your final answers to 2 decimal places.)