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1. Prepare a schedule analyzing the changes in each of the plant assets during 2016. 2. Prepare a schedule showing the gain or loss from
1. | Prepare a schedule analyzing the changes in each of the plant assets during 2016. 2. Prepare a schedule showing the gain or loss from each asset disposal that would be recognized in Pells income statement for the year ended December 31, 2016.
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The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 20 Accumulated Plant Asset Depreciation and 470,000 240,000 Land improvements 57,000 2,100,000 Building 362,000 Machinery and equipment 1,182,000 417,000 210,000 124,000 Automobiles Transactions during 2016 were as follows: a. On January 2, 2016, machinery and equipment were purchased at a total invoice cost of $320,000, which included a $6,700 charge for freight. Installation costs of$39,000 were incurred. b. On March 31, 2016, a machine purchased for $70,000 in 2012 was sold for $48,500. Depreciation recorded through the date of sale totaled $26,450. c. On May 1, 2016, expenditures of $62,000 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, 2016, 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 $40 per share. Pell paid legal fees and title insurance totaling $35,000. Shortly after acquisition, the building was razed at a cost of $47,000 in anticipation of new building construction in 2017 e. On December 31, 2016, Pell purchased a new automobile for $16,450 cash and trade-in of an old automobile purchased for $24,000 in 2012. Depreciation on the old automobile recorded through December 31, 2016, totaled $14,700. The fair value of the old automobile was $4,950. The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 20 Accumulated Plant Asset Depreciation and 470,000 240,000 Land improvements 57,000 2,100,000 Building 362,000 Machinery and equipment 1,182,000 417,000 210,000 124,000 Automobiles Transactions during 2016 were as follows: a. On January 2, 2016, machinery and equipment were purchased at a total invoice cost of $320,000, which included a $6,700 charge for freight. Installation costs of$39,000 were incurred. b. On March 31, 2016, a machine purchased for $70,000 in 2012 was sold for $48,500. Depreciation recorded through the date of sale totaled $26,450. c. On May 1, 2016, expenditures of $62,000 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, 2016, 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 $40 per share. Pell paid legal fees and title insurance totaling $35,000. Shortly after acquisition, the building was razed at a cost of $47,000 in anticipation of new building construction in 2017 e. On December 31, 2016, Pell purchased a new automobile for $16,450 cash and trade-in of an old automobile purchased for $24,000 in 2012. Depreciation on the old automobile recorded through December 31, 2016, totaled $14,700. The fair value of the old automobile was $4,950
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