The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2020: Accumulated Depreciation $ Land Land improvements Building Equipment Automobiles Plant Asset $ 380,000 195,000 1,650,000 1,164,000 165,000 Transactions during 2021 were as follows: a. On January 2, 2021, 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. b. On March 31, 2021, 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 $16.000. c. On May 1, 2021, 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, 2021, 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 $37 per share. Pell paid legal fees and title insurance totaling $26,000. Shortly after acquisition, the building was razed at a cost of $38,000 in anticipation of new building construction in 2022 e. On December 31, 2021, Pell purchased a small storage building by giving $15,550 cash and an old automobile purchased for $19,500 in 2014. Depreciation on the old automobile recorded through December 31, 2021, totaled $13,800. The fair value of the old automobile was $4,050. Land Land improvements Building Required: Prepare a schedule analyzing the changes in each of the plant assets during 2021. Equipment Automobiles Totals 48,000 353,000 408,000 115,000 PELL CORPORATION Analysis of Changes in Plant Assets For the Year Ended December 31, 2021 Balance 12/31/2020 $ 380,000 195,000 1,650,000 1,164,000 165,000 $ 3,554,000 $ Increase Decrease 0 $ Balance 12/31/2021 $

The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2020: Accumulated Depreciation $ Land Land improvements Building Equipment Automobiles Plant Asset $ 380,000 195,000 1,650,000 1,164,000 165,000 Transactions during 2021 were as follows: a. On January 2, 2021, 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. b. On March 31, 2021, 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 $16.000. c. On May 1, 2021, 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, 2021, 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 $37 per share. Pell paid legal fees and title insurance totaling $26,000. Shortly after acquisition, the building was razed at a cost of $38,000 in anticipation of new building construction in 2022 e. On December 31, 2021, Pell purchased a small storage building by giving $15,550 cash and an old automobile purchased for $19,500 in 2014. Depreciation on the old automobile recorded through December 31, 2021, totaled $13,800. The fair value of the old automobile was $4,050. Land Land improvements Building Required: Prepare a schedule analyzing the changes in each of the plant assets during 2021. Equipment Automobiles Totals 48,000 353,000 408,000 115,000 PELL CORPORATION Analysis of Changes in Plant Assets For the Year Ended December 31, 2021 Balance 12/31/2020 $ 380,000 195,000 1,650,000 1,164,000 165,000 $ 3,554,000 $ Increase Decrease 0 $ Balance 12/31/2021 $

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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