McDonald Company property and equipment and accumulated depreciation and amortization balances at January 1, 2016 are:

	Cost	Accumulated Depreciation
Land	$275,000	zero
Buildings	1,400,000	336,450
Machinery	685,000	183,750
Automobiles and Trucks	105,000	57,163
Leasehold Improvements	216,000	54,000

Total

2,681,000

631,363

Depreciation and amortization methods and useful life

Buildings 150% declining balance; 25 years

Machinery and equipment Straight line; 10 years

Automobiles and trucks 150% declining balance; 5 years

Leasehold improvements Straight line; 12 years

Depreciation is computed to the nearest month

Salvage value of depreciable assets are immaterial except for automobiles and trucks, which have estimated salvage value equal to 15% of cost.

Other additional information:

* On January 6, 2017, Yankee completed its self-construction of a building on its own land. Direct costs of construction were $1,095,000. Construction of the building required 15,000 direct labor hours. Yankees construction department has an overhead allocation system for outside jobs based on an activity denominator of 100,000 direct labor hours, budgeted fixed costs of $2.5 million and variable cost of $27 per direct labor hour.

* On July 1, 2017, machinery and equipment were purchased at a total invoice cost of $162,500. The $9,000 is for concrete embedding of machinery were incurred. A wall had to be demolished for a large machine to be moved into the plant. The wall demolition cost $3,500 and rebuilding the wall cost $9,500.

* On August 30, 2017, Yankee purchased a new automobile for $25,000

* On September 30, 2017, a truck with a cost of $24,000 and a carrying amount $15,000 on December 31, 2017, was sold for $11,750

* On November 4, 2017, Yankee purchased a tract of land for investment purposes for $350,000. Yankee may use the land as a future building site

* On December 20, 2017, a machine with a cost of $17,000, a carrying amount of $2,975 on the date of disposition and a fair value of $4,000 was given to a corporate officer in partial liquidation of debt.

REQUIRED: Complete the following schedule for the acquisitions and sale of the assets:

McDonald Company

Analysis of Changes in Property, Plant and Equipment

For the Year Ending December 31,2017

	Balance 01/01/2017	Increase	Decrease	Balance 12/31/2017
Land	275,000
Buildings	1,400,000
Machinery and Equipment	685,000
Automobiles and Trucks	105,000
Leasehold Improvements	216,000
Total	2,681,000

Complete the Following Schedule of Depreciation and Amortization Expense (Show your Calculations)

McDonald Company

Analysis of Changes in Accumulated Depreciation and Amortization

	Accumulated Depreciation Balance 01/01/2017	Increase	Decrease	Balance 12/31/17
Land	zero
Buildings	336,450
Machinery	183,750
Automobiles and Trucks	57,163
Leasehold Improvements	54,000
Total	631,363