What is the depreciation for the current year? Assets have been carried at cost since acquisition. All assets were acquired on January 1, 2009. The straight line method isused.On January 1, 2015, the entity decided to revalue the property, plant, and equipment. On such date, competent appraiserssubmitted the following:ReplacementCostLand5,000,000Building25,000,000Machinery5,000,000 On January 1, 2015, Guiamalon Company reported the following account balances relating to property, plant, and equipment:Land2,000,000Building15,000,000AccumulatedDepreciation3,750,000Machinery3,000,000AccumulatedDepreciation1,500,000Assets have been carried at cost since acquisition. All assets were acquired on January 1, 2009. The straight line method isused.On January 1, 2015, the entity decided to revalue the property, plant, and equipment. On such date, competent appraisers

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Description: What is the depreciation for the current year? Assets have been carried at cost since acquisition. All assets were acquired on January 1, 2009. The straight line method isused.On January 1, 2015, the entity decided to revalue the property, plant, and

Depreciation means a fall in value of assets due to wear and tear, eflux of time, and obsolecense…

Answered: Assets have been carried at cost since…

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Assets have been carried at cost since acquisi used. On January 1, 2015, the entity decided to reva submitted the following: Replacement Cost

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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At December 31, 2013, certain accounts included in the property, plant, and equipment section of Reagan Company’s balance sheet had the following balances. Land Buildings Leasehold improvements Equipment $230,000890,000660,000875,000 During 2014, the following transactions occurred.1. Land site number 621 was acquired for $850,000. In addition, to acquire the land Reagan paid a $51,000 commission to a real estate agent. Costs of $35,000 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for $13,000. A second tract of land (site number 622) with a building was acquired for $420,000. The closing statement indicated that the land value was $300,000 and the building value was $120,000. Shortly after acquisition, the building was demolished at a cost of $41,000. A new building was constructed for $330,000 plus the following costs. Excavation fees $38,000 Architectural design fees 11,000 Building permit fees…
At December 31, 2013, certain accounts included in the property, plant, and equipment section of Reagan Company’s balance sheet had the following balances. Land Buildings Leasehold improvements Equipment $230,000890,000660,000875,000 During 2014, the following transactions occurred.1. Land site number 621 was acquired for $850,000. In addition, to acquire the land Reagan paid a $51,000 commission to a real estate agent. Costs of $35,000 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for $13,000. A second tract of land (site number 622) with a building was acquired for $420,000. The closing statement indicated that the land value was $300,000 and the building value was $120,000. Shortly after acquisition, the building was demolished at a cost of $41,000. A new building was constructed for $330,000 plus the following costs. The building was completed and occupied on September 30, 2014.3. A third tract of…
On January 1, 2020, Covid 19 Company reported the following account balances relating to property, plant and equipment: Land 2,000,000.00 Building 15,000,000.00 Accumulated Depreciation 3,750,000.00 Machinery 3,000,000.00 Accumulated Depreciation 1,500,000.00 Assets have been carried at cost since acquisition. All assets were acquired on January 1, 2010. The straight line method is used. On January 1, 2020, the entity decided to revalue the property, plant and equipment. On such date, competent appraisers submitted the following: Replacement Cost Land 5,000,000.00 Building 25,000,000.00 Machinery 5,000,000.00 What is the revaluation surplus on December 31, 2020?
2. Prepare a schedule showing the gain or loss from each asset disposal that would be recognized in Pell's income statement for the year ended December 31, 2016. PELL CORPORATION Gain or Loss from Plant Asset Disposals For the Year Ended December 31, 2016 Sale of machine on 3/31/16: Trade-in of automobile on 12/31/16:
At December 31, 2017, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances as follows: Category Plant Asset Accumulated Depreciationand Amortization Land $ 182,000 $ — Buildings 1,850,000 335,900 Machinery and equipment 1,475,000 324,500 Automobiles and trucks 179,000 107,325 Leasehold improvements 230,000 115,000 Land improvements — — Depreciation methods and useful lives:Buildings—150% declining balance; 25 years.Machinery and equipment—Straight line; 10 years.Automobiles and trucks—150% declining balance; 5 years, all acquired after 2014.Leasehold improvements—Straight line.Land improvements—Straight line. Depreciation is computed to the nearest month and residual values are immaterial. Transactions during 2018 and other information: On January 6, 2018, a plant facility consisting of land and building was acquired from King Corp. in exchange for 32,000…
1. What are the major characteristics of plant assets? 2. Mickelson Inc. owns land that it purchased on Jan 1, 2000, for $450,000. At Dec 31. 2017, its current value is $770,000 as determined by appraisal. At what amount should Mickelson report this asset on its Dec 31, 2017, balance sheet? Explain. 3. Name the items, I addition to the amount paid to the former owner or contractor, that may properly be included as part of the acquisition cost of the following plant assets. a. Land b. Machinery and equipment c. Buildings 4. Provide examples of assets that do not qualify for interest capitalization. 5. What accounting treatment is normally given to the following items in accounting for plant assets? a. Additions b. Major repairs c. Improvements and replacements
Morey, Inc., has the following plant asset accounts: Land, Buildings, and Equipment, with a separate accumulated depreciation account for each of these except Land. Morey completed the following transactions: Jan 4 Traded in equipment with accumlated depreciation of $64,000 (cost of $134,000) for similar new equipment with a cash cost of $175,000. Recieved a trade-in allowance of $72,000 on the old equipment and paid $103,000 in cash. Jan 29 Sold a building that had a cost of $650,000 and had accumulated depreciationof $140,000 through December 31 of the preceding year. Depreciation is computed on a straight-line basis. The building has a 40-year useful life and a residual value of $220,000. Morey received $125,000 cash and a $379,625 note receivable. Oct 30 Purchased land and a building for a single price of $360,000 cash. An independent appraisal valued the land at $160,800 and the building at $241,200. Dec 31 Recorded depreciation as follows: Equipment has an expected…
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On January 1, 2021, Peaceful Company reported the following account balances relating to property, plant and equipment: Land, P 4,000,000; Building, P 30,000,000, with Accumulated Depreciation of P 7,500,000. Assets have been carried at cost since acquisition. All assets were acquired on January 1, 2021. The straight-line method is used. On January 1, 2021, the entity decided to revalue the property, plant and equipment. On such date, competent appraisers submitted the following (at replacement cost): Land, P10,000,000; Building, P 50,000,000. What is the revaluation surplus on January 1, 2021? P 15,000,000P 6,000,000P 30,000,000P 21,000,000
Maria Company had the following property, plant, and equipment at December 31, 2014:Cost Book ValueLand 4,000,000 4,000,000Office building 30,000,000 22,500,000Machinery 6,000,000 3,000,000 These assets are carried under the cost model since their acquisition on January 3, 2005. The straight linemethod is used in computing depreciation charges. Assume that the residual value is immaterial. On January 2,2015, Maria decided to adopt the revaluation mode. Accordingly, reputable appraisers submitted the followingfair values: Land – P10,000,000 Office Building – P37,500,000 Machinery – P5,000,000There was no change in useful life. The office building has 40 years of useful life, while machinery is beingdepreciated over 20 years. On January 5, 2017, the Company had these assets subjected to a secondrevaluation. Result of the second revaluation show the following sound values: Land – P8,000,000 Office Building –P22,750,000* Machinery – P2,000,000* Maria uses the proportional approach in…
The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2023: Plant Asset Accumulated Depreciation $ 480,000 245,000 2,150,000 1,184,000 215,000 Land Land improvements Building Equipment Automobiles Transactions during 2024 were as follows: a. On January 2, 2024, equipment was purchased at a total invoice cost of $325,000, which included a $6,800 charge for freight Installation costs of $40,000 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 $32,000. The fair value of the building on the day of the donation was $21,000. c. On May 1, 2024, expenditures of $63,000 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…