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 $ 335,000 175,500 1,470,000 1,128,000 $ 0 42,000 393,822 147,000 390,000 110,500 Transactions during 2024 were as follows: a. On January 2, 2024, equipment were purchased at a total invoice cost of $245,000, which included a $5,200 charge for freight. Installation costs of $24,000 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 $22,000. The fair value of the building on the day of the donation was $15,400. c. On May 1, 2024, expenditures of $47,000 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 $35 per share. Pell paid legal fees and title insurance totaling $21,500. Shortly after acquisition, the building was razed at a cost of $32,000 in anticipation of new building construction in 2025. e. On December 31, 2024, Pell purchased a small storage building by giving $14,500 cash and an old automobile purchased for $16,500 in 2017. Depreciation on the old automobile recorded through December 31, 2024, totaled $12,375. The fair value of the old automobile was $3,600. 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 36,500 miles in 2024. Note: Do not round intermediate calculations and round your final answers to 2 decimal places. PELL CORPORATION Depreciation For the Year Ended December 31, 2024 Land Improvements Building Equipment Automobiles Total depreciation for 2024 $ 0.00 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 $ 335,000 175,500 1,470,000 1,128,000 $ 0 42,000 393,822 147,000 390,000 110,500 Transactions during 2024 were as follows: a. On January 2, 2024, equipment were purchased at a total invoice cost of $245,000, which included a $5,200 charge for freight. Installation costs of $24,000 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 $22,000. The fair value of the building on the day of the donation was $15,400. c. On May 1, 2024, expenditures of $47,000 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 $35 per share. Pell paid legal fees and title insurance totaling $21,500. Shortly after acquisition, the building was razed at a cost of $32,000 in anticipation of new building construction in 2025. e. On December 31, 2024, Pell purchased a small storage building by giving $14,500 cash and an old automobile purchased for $16,500 in 2017. Depreciation on the old automobile recorded through December 31, 2024, totaled $12,375. The fair value of the old automobile was $3,600. 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 36,500 miles in 2024. Note: Do not round intermediate calculations and round your final answers to 2 decimal places. PELL CORPORATION Depreciation For the Year Ended December 31, 2024 Land Improvements Building Equipment Automobiles Total depreciation for 2024 $ 0.00
Expert Answer:
Related Book For
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Posted Date:
Students also viewed these accounting questions
-
The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2023: Transactions during 2024 were as follows: a. On January 2, 2024, equipment...
-
A puck on a horizontal, frictionless surface is attached to a string that passes through a hole in the surface, as shown in FIGURE 11-52. As the puck rotates about the hole, the string is pulled...
-
Aamco Heating and Cooling, Inc., advertises that any customer buying an air conditioner during the first 16 days of July will receive a 25 percent discount if the average high temperature for this...
-
K Find f'(-3) if f(x)= +3 - 10x. 6 f'(-3)= (Simplify your answer. Type an integer or a fraction.)
-
The Principles for Responsible Investment (PRI) in their ESG integration in listed equity: A technical guide (2023) defines ESG integration as the process of including ESG factors in investment...
-
Using the present value tables, solve the following: Required 1. What is the present value on January 1, 2007 of $30,000 due on January 1, 2011 and discounted at 10% compounded annually? 2. What is...
-
How do advanced separation techniques, such as membrane-based extraction and liquid membrane extraction, overcome limitations of traditional extraction methods, and what are their respective...
-
As workplaces shift to remote work, there is an increased need to utilize collaboration tools. In the first section of this course, you had the opportunity to reply to a message from a co-worker...
-
Draft a paragraph for each question's answers: Question 1 : Explain three benefits of inclusion to a person who believes that all special needs students should be educated exclusively in a special...
-
In a survey of 206 investors, it was observed that only 10 employees owned shares of the company, 30 owned only securities and 140 owned bonds. In addition, 26 owned shares and securities; 46 had...
-
The following diagram shows the Gint coefficient and income share of the B40. M40 and T20 groups in Malaysia between the years 1970 and 2019. Income Share (%) 70.0 60.0 55.7 50.0 40.0 30.0 20.0 10.0...
-
Suppose you serve demand in a set of six cities with a single product, where each city has weekly demand for the product that is normally distributed with mean 250 units and standard deviation 85....
-
On a typical day, the Stonebriar mall sees customers arriving at an average rate of 225 per hour. Each customer stays in the mall for an average of 135 minutes. 1. What is the average number of...
-
The Herms family defended themselves by forming a holding company of their family shares. How will this work and how long do you think it will last? Read the case study LVMH VS. HERMS and answer the...
-
Solve each problem. Find the coordinates of the points of intersection of the line y = 2 and the circle with center at (4, 5) and radius 4.
-
What is a P-value for a hypothesis test?
-
You plan a survey to estimate the proportion of students on your campus who carry an iPad regularly. How many students should be in the sample if you want (with 95% confidence) a margin of error of...
-
What is a hypothesis test?
Study smarter with the SolutionInn App