The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2023: Land Land improvements Building Equipment Automobiles Plant Asset Accumulated Depreciation $ 390,000 192,000 1,580,000 1,238,000 $ 0 53,000 423,291 158,000 445,000 116,000 Transactions during 2024 were as follows: a. On January 2, 2024, equipment were purchased at a total invoice cost of $300,000, which included a $6,300 charge for freight. Installation costs of $35,000 were incurred in addition to the invoice cost. b. On March 31, 2024, a small storage building was donated to the company. The person donating the building originally purchased it three years ago for $33,000. The fair value of the building on the day of the donation was $21,000. c. On May 1, 2024, expenditures of $58,000 were made to repave parking lots at Pell's plant location. The work was necessitated by damage caused by severe winter weather. The repair doesn't provide future benefits beyond those originally anticipated. d. On November 1, 2024, 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 $46 per share. Pell paid legal fees and title insurance totaling $27,000. Shortly after acquisition, the building was razed at a cost of $43,000 in anticipation of new building construction in 2025. e. On December 31, 2024, Pell purchased a small storage building by giving $17,250 cash and an old automobile purchased for $22,000 in 2017. Depreciation on the old automobile recorded through December 31, 2024, totaled $16,500. The fair value of the old automobile was $4,150. Required: For each asset classification, prepare a schedule showing depreciation for the year ended December 31, 2024, 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 42,000 miles in 2024. The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2023: Land Land improvements Building Equipment Automobiles Plant Asset Accumulated Depreciation $ 390,000 192,000 1,580,000 1,238,000 $ 0 53,000 423,291 158,000 445,000 116,000 Transactions during 2024 were as follows: a. On January 2, 2024, equipment were purchased at a total invoice cost of $300,000, which included a $6,300 charge for freight. Installation costs of $35,000 were incurred in addition to the invoice cost. b. On March 31, 2024, a small storage building was donated to the company. The person donating the building originally purchased it three years ago for $33,000. The fair value of the building on the day of the donation was $21,000. c. On May 1, 2024, expenditures of $58,000 were made to repave parking lots at Pell's plant location. The work was necessitated by damage caused by severe winter weather. The repair doesn't provide future benefits beyond those originally anticipated. d. On November 1, 2024, 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 $46 per share. Pell paid legal fees and title insurance totaling $27,000. Shortly after acquisition, the building was razed at a cost of $43,000 in anticipation of new building construction in 2025. e. On December 31, 2024, Pell purchased a small storage building by giving $17,250 cash and an old automobile purchased for $22,000 in 2017. Depreciation on the old automobile recorded through December 31, 2024, totaled $16,500. The fair value of the old automobile was $4,150. Required: For each asset classification, prepare a schedule showing depreciation for the year ended December 31, 2024, 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 42,000 miles in 2024.
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Have I done this correctly? In case you were wondering what experiment I was doing, it is the magic milk experiment about how food color moves away from the dish soap in a bowl of milk. EPS Unit 1...
-
Why might management be reluctant to prepare a formal job description for a position like "creative manager of content"? What are the pitfalls of not doing so? One way to see the significance of work...
-
Garnets Gym is a fitness and aerobic center located in Atlanta, Georgia. With over 25,000 square feet of space, Garnets offers its customers an unparalleled fitness experience, including the finest...
-
Which two methods of capital investment analysis ignore present value?
-
Presented below is information related to Aromashodu Real Estate Agency. Oct. 1 Devin Aromashodu begins business as a real estate agent with a cash investment of $15,000. 2 Hires an administrative...
-
Question 3: The balance sheet of Bank A on December 31, 2023 is as follows (Unit: Million VND): Amount LIABILITY & EQUITY Deposits from enterprises Savings ASSET Cash 1.056 Deposit at the central...
-
n3 = 1.3 pump output Inner cladding n = refractive index Core n2 1.4 Outer cladding Jacket Doped Core- Inner cladding Fig. 1: Structure of double clad doped fiber Given a doped double clad fiber...
-
The following codes contain errors and incomplete. Complete the program below with correct codes by implementing Doubly Linked List. class Linked List { struct Node { int no; ? //missing code };...
-
Q1. Which we are fast using the robotic technology? Explain the effects of robotic technologies on the economic development and growth. Q2. Explain how the widespread use of retailers' robots will...
-
1 What are the main components of personal financial planning? Solve What is the purpose of a financial plan? Solve Identify some common actions taken to achieve financial goals. How does a job...
-
What is the difference between real and nominal rates of interest? Explain the four moments with respect to investing and specifically, to risk-return. How does this link to normality assumptions?...
-
US Constitution provides a system of checks and balances that prevents one branch of government from seizing all powers. What are your views on this type of system?
-
A competitive firm pollutes the air. The following graph shows the demand for the firm??s product and the private and social marginal cost curves. The numbers in the graph represent areas. a. Suppose...
-
Complete problem P10-21 using ASPE. Data from P10-21 Original cost ................................................................. $7,000,000 Accumulated depreciation...
-
Compute the missing amounts (in millions) in the following table. (The balance in retained earnings at year-end 2015 was \($2.2.)\) Comment on the firms performance over the three-year period after...
-
Compute the missing amounts in the following table. (At the end of 2015, retained earnings had a balance of negative $2,086.) Comment on the companys performance over the three-year period after...
-
In its 2014 annual report to shareholders, General Electric reported the following financial results: 1. Revenues increased from \($146.0\) to \($148.5\) billion. 2. Net income increased from...
Study smarter with the SolutionInn App