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Need help completing Building and Automobiles section The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2017:
Need help completing Building and Automobiles section
The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2017: Accumulated Plant As set Depreciation Land Land improvements Building Machinery and equipment Automobiles $ 380,000 195,000 1,650,000 1,164,000 165,000 48,000 353,000 408,000 115, 000 Transactions during 2018 were as follows a. On January 2, 2018, machinery and equipment were purchased at a total invoice cost of $275,000, which included a $5,800 charge b. On March 31, 2018, a small storage building was donated to the company. The person donating the building originally purchased it c. On May 1, 2018, expenditures of $53,000 were made to repave parking lots at Pell's plant location. The work was necessitated by d. On November 1, 2018, Pell acquired a tract of land with an existing building in exchange for 10,000 shares of Pell's common stock for freight. Installation costs of $30,000 were incurred three years ago for $22,000. The fair value of the building on the day of the donation was $16,000. damage caused by severe winter weather. that had a market price of $37 per share. Pell paid legal fees and title insurance totaling $26,000. Shortly after acquisition, the building was razed at a cost of $38,000 in anticipation of new building construction in 2019. e. On December 31, 2018, Pell purchased a small storage building by giving $15,550 cash and an old automobile purchased for $19,500 in 2014. Depreciation on the old automobile recorded through December 31, 2018, totaled $13,800. The fair value of the old automobile was $4,050. Required: Prepare a schedule analyzing the changes in each of the plant assets during 2018. PELL CORPORATION Analysis of Changes in Plant Assets For the Year Ended December 31, 2018 Balance Balance 12/31/2017 Increase Decrease 12/31/2018 $380,000$ 434,000 195,000 $814,000 Land Land improvements Building 195,000 1,650,000 16.000 Machinery and equipment Automobiles 1,164,000 305,000 1,469,000 165,000 Totals $ 3,554,000 755,000 S 0 $2,478,000Step by Step Solution
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