""I am not understanding how the depreciation expense schedule is done. I need to also know how this is answered.""

2. For each asset classification, prepare a schedule showing depreciation expense for the year ended December 31, 2019.

PELL CORPORATION
Depreciation Expense
For the Year Ended December 31, 2019
Land improvements:
Total depreciation on land improvements			$fill in the blank
Building:
Total depreciation on building			fill in the blank
Machinery and equipment:
Cost of machinery and equipment, Balance, 12/31/18	$fill in the blank
Deduct machine sold 3/31/19	fill in the blank	$fill in the blank
Depreciation after applying straight-line rate			fill in the blank
Cost of asset purchased 1/2/19		$fill in the blank
Depreciation			fill in the blank
Cost of machine sold 3/31/19		$fill in the blank
Depreciation from 1/1/19 to 3/31/19			fill in the blank
Total depreciation on machinery and equipment			fill in the blank
Automobiles:
Total depreciation on automobiles			fill in the blank
Total depreciation expense for 2019			$fill in the blank

More Information for this.

Pell Corporation's property, plant, and equipment and accumulated depreciation accounts had the following balances at December 31, 2018:

	Property, Plant, and Equipment	Accumulated Depreciation
Land	$350,000	$
Land Improvements	180,000	45,000
Building	1,500,000	350,000
Machinery and Equipment	1,158,000	405,000
Automobiles	150,000	112,000

Depreciation method and useful lives:

• Land improvements: Straight-line; 15 years.
• Building: 150%-declining-balance; 20 years.
• Machinery and equipment: Straight-line; 10 years.
• Automobiles: 150%-declining-balance; 3 years.
• Depreciation is computed to the nearest month. No salvage values are recognized.

Transactions during 2019:

1. On January 2, 2019, machinery and equipment were purchased at a total invoice cost of $260,000, which included a $5,500 charge for freight. Installation costs of $27,000 were incurred.
2. On March 31, 2019, a machine purchased for $58,000 on January 3, 2015, was sold for $36,500.
3. On May 1, 2019, expenditures of $50,000 were made to repave parking lots at Pell's plant location. The work was necessitated by damage caused by severe winter weather.
4. On November 2, 2019, Pell acquired a tract of land with an existing building in exchange for 10,000 shares of Pell's $20 par common stock, which had a market price of $38 a share on this date. Pell paid legal fees and title insurance totaling $23,000. The last property tax bill indicated assessed values of $240,000 for land and $60,000 for building. Shortly after acquisition, the building was razed at a cost of $35,000 in anticipation of new building construction in 2020.
5. On December 31, 2019, Pell purchased a new automobile for $15,250 cash and trade-in of an automobile purchased for $18,000 on January 1, 2018. The new automobile has a cash value of $19,000.

Required:

1. Prepare a schedule analyzing the changes in each of the plant assets during 2019. Disregard the related accumulated depreciation accounts.

PELL CORPORATION
Analysis of Changes in Plant Assets
For the Year Ended December 31, 2019
	Balance 12/31/18	Increase	Decrease	Balance 12/31/19
Land	$350000	$438000		$788000
Land improvements	180000			180000
Building	1500000			1500000
Machinery and equipment	1158000	287000	58000	1387000
Automobiles	150000	19000	18000	151000
Totals	3338000	744000	76000	4006000