The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2023 Plant Asset Accumulated Depreciation $365,000 184,500 1,530,000 1,188,000 153,000 Transactions during 2024 were as follows: a. On January 2, 2024, equipment were purchased at a total Invoice cost of $275,000, which included a $5,800 charge for freight Installation costs of $30,000 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 t three years ago for $28,000. The fair value of the building on the day of the donation was $18,200. c. On May 1, 2024, expenditures of $53,000 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 $41 per share. Pell paid legal fees and title Insurance totaling $24.500. Shortly after acquisition, the building was razed at a cost of $38,000 in anticipation of new building construction in 2025. e. On December 31, 2024, Pell purchased a small storage building by giving $16,000 cash and an old automobile purchased for $19.500 in 2017. Depreciation on the old automobile recorded through December 31, 2024, totaled $14.625. The fair value of the old automobile was $3,900. Land Land improvements Building Equipment Automobiles Land Improvements-Straight line; 15 years. Building-150% declining balance; 20 years. 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: Equipment Straight line: 10 years. Automobiles Units-of-production: $0.50 per mile PELL CORPORATION Depreciation For the Year Ended December 31, 2024 50 48,000 409,896 Depreciation is computed to the nearest month and no residual values are used. Automobiles were driven 39,500 miles in 2024. Note: Do not round intermediate calculations and round your final answers to 2 decimal places. Land Improvements 420,000 113,500 Building Equipment Automobiles Total deoreciation for 2024

The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2023 Plant Asset Accumulated Depreciation $365,000 184,500 1,530,000 1,188,000 153,000 Transactions during 2024 were as follows: a. On January 2, 2024, equipment were purchased at a total Invoice cost of $275,000, which included a $5,800 charge for freight Installation costs of $30,000 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 t three years ago for $28,000. The fair value of the building on the day of the donation was $18,200. c. On May 1, 2024, expenditures of $53,000 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 $41 per share. Pell paid legal fees and title Insurance totaling $24.500. Shortly after acquisition, the building was razed at a cost of $38,000 in anticipation of new building construction in 2025. e. On December 31, 2024, Pell purchased a small storage building by giving $16,000 cash and an old automobile purchased for $19.500 in 2017. Depreciation on the old automobile recorded through December 31, 2024, totaled $14.625. The fair value of the old automobile was $3,900. Land Land improvements Building Equipment Automobiles Land Improvements-Straight line; 15 years. Building-150% declining balance; 20 years. 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: Equipment Straight line: 10 years. Automobiles Units-of-production: $0.50 per mile PELL CORPORATION Depreciation For the Year Ended December 31, 2024 50 48,000 409,896 Depreciation is computed to the nearest month and no residual values are used. Automobiles were driven 39,500 miles in 2024. Note: Do not round intermediate calculations and round your final answers to 2 decimal places. Land Improvements 420,000 113,500 Building Equipment Automobiles Total deoreciation for 2024

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 8P

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