Yankee Co.'s property, plant, and equipment and accumulated depreciation and amortization balances at December 31, Year 4, are

Asset	Cost	Accumulated Depreciation
Land	$   275,000	--
Buildings	2,800,000	$   672,900
Machinery and equipment	1,380,000	367,500
Automobiles and trucks	210,000	114,326
Leasehold improvements	432,000	108,000
Totals	$5,097,000	$1,262,726
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Additional information

• Yankee entered into a 12-year operating lease starting January 1, Year 2. The leasehold improvements were completed on December 31, Year 1, and the facility was occupied on January 1, Year 2.
• On January 6, Year 5, Yankee completed its self-construction of a building on its own land. Direct costs of construction were $1,095,000. Construction of the building required 15,000 direct labor hours. Yankee's construction department has an overhead allocation system for outside jobs based on an activity denominator of 100,000 direct labor hours, budgeted fixed costs of $2.5 million, and budgeted variable costs of $27 per direct labor hour.
• On July 1, Year 5, machinery and equipment were purchased at a total invoice cost of $325,000. Additional costs of $23,000 to repair damage on delivery and $18,000 for concrete embedding of machinery were incurred. A wall had to be demolished for a large machine to be moved into the plant. The wall demolition cost $7,000, and rebuilding the wall cost $19,000.
• On August 30, Year 5, Yankee purchased a new automobile for $25,000.
• On September 30, Year 5, a truck with a cost of $48,000 and a carrying amount of $30,000 on December 31, Year 4, was sold for $23,500.
• On November 4, Year 5, Yankee purchased a tract of land for investment purposes for $700,000. Yankee may use the land as a future building site.
• On December 20, Year 5, a machine with a cost of $17,000, a carrying amount of $2,975 on the date of disposition, and a fair value of $4,000 was given to a corporate officer in partial liquidation of a debt.

Enter the appropriate monetary values in the designated cells below for items properly classified as PPE. Indicate decreases by using a leading minus (-) sign. If no entry is necessary, enter a zero (0) or leave the cell blank. Do not consider accumulated depreciation.

Yankee Co.
ANALYSIS OF CHANGES IN
PROPERTY, PLANT, AND EQUIPMENT
For the Year Ended December 31, Year 5

Item	Balance 12/31/Year 4	Increase	Decrease	Balance 12/31/Year 5
1. Land
2. Buildings
3. Machinery and equipment
4. Automobiles and trucks
5. Leasehold improvements

Answer rating: 100% (QA)

Item Balance 1231Year 4 Increase Decrease Balance 1231Year 5 1 ... View the full answer