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At December 31, 2015, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances as follows: JUST NEED AUTO ANSWER MARKED IN RED
At December 31, 2015, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances as follows:
JUST NEED AUTO ANSWER MARKED IN RED RESOLVED.
At December 31, 2015, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances as follows: Category Land Buildings Machinery and equipment Automobiles and trucks Leasehold improvements Land improvements Plant Asset $ 169,000 1,200,000 825,000 166,000 204,000 Accumulated Depreciation and Amortization $ - 322,900 311,500 94,325 102,000 Depreciation methods and useful lives: Buildings150% declining balance: 25 years. Machinery and equipment-Straight line; 10 years. Automobiles and trucks-150% declining balance; 5 years, all acquired after 2012 Leasehold improvementsStraight line. Land improvementsStraight line. Depreciation is computed to the nearest month and residual values are immaterial. Transactions during 2016 and other information: a. On January 6, 2016, a plant facility consisting of land and building was acquired from King Corp. in excnange for 19,000 shares of Cord's common stock. On this date, Cord's stock had a fair value of $60 a share. Current assessed values of land and building for property tax purposes are $207,000 and $483,000, respectively. b. On March 25, 2016, new parking lots, streets, and sidewalks at the acquired plant facility were completed at a total cost of $156,000. These expenditures had an estimated useful life of 12 years. C. The leasehold improvements were completed on December 31, 2012, and had an estimated useful life of eight years. The related lease, which would terminate on December 31, 2018, was renewable for an additional four-year term. On April 29, 2016, Cord exercised the renewal option. ry and equipment were purchased at a total invoice cost of $319.000 Additional costs of $11,000 for delivery and $44,000 for installation were incurred. e. On August 30, 2016, Cord purchased a new automobile for $11.900. f. On September 30, 2016, a truck with a cost of $23,400 and a book value of $8,000 on date of sale was sold for $10.900. Depreciation for the nine months ended September 30, 2016, was $1,800. 9. On December 20, 2016, a machine with a cost of $14,000 and a book value of $2,825 at date of disposition was scrapped without cash recovery. Required: 1. Prepare a schedule analyzing the changes in each of the plant asset accounts during 2016. Do not analyze changes in accumulated depreciation and amortization. Required: 1. Prepare a schedule analyzing the changes in each of the plant asset accounts during 2016. Do not analyze changes in accumulated depreciation and amortization. Answer is complete and correct. CORD COMPANY Analysis of Changes in Plant Assets For the Year Ending December 31, 2016 Balance 12/31/15 Increase Decrease $ 169,000 $ 342,000 $ 0 156,000 0 1,200,000 798,000 0 825,000 374,000 14,000 166,000 11,900 23,400 Land Land improvements Buildings Machinery and equipment Automobiles and trucks Leasehold improvements $ Balance 12/31/16 511,000 156,000 1,998,000 1,185,000 154,500 204,000 $ 2,564,000 0 $ 1,681,900 204,000 $ 4,208,500 $ 37,400 2. For each asset category, prepare a schedule showing depreciation or amortization expense for the year ended December 31, 2016. (Do not round intermediate calculations.) Answer is complete but not entirely correct. CORD COMPANY Depreciation and Amortization Expense For the Year Ending December 31, 2016 Land Improvements Buildings Machinery and equipment Automobiles and trucks Leasehold improvements Total depreciation and amortization expense for 2016 $ 9,750 100,506 101,200 24,493 20,400 256,349Step by Step Solution
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