The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2017: 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 charge for freight. Installation costs of $27,000 were incurred. b. On March 31, 2018, a

Chapter 10, Problems #3

This problem has been solved!


Do you need an answer to a question different from the above? Ask your question!
The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2017:
The plant asset and accumulated depreciation accounts of Pell Corporation

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 charge for freight. Installation costs of $27,000 were incurred.
b. 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.
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 damage caused by severe winter weather.
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 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 in 2014. Depreciation on the old automobile recorded through December 31, 2018, totaled $13,500. The fair value of the old automobile was $3,750.
Required:
Prepare a schedule analyzing the changes in each of the plant assets during 2018, with detailed supporting computations.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Related Book For answer-question

Intermediate Accounting

9th Edition

Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

ISBN: 9781259722660

Continuing Case: