Pell Corp. was involved with the following events and transaction during 2018:

a. On January 2, 2018, machinery and equipment were purchased at a total invoice cost of $300,000, which included a $6,300 charge for freight. Installation costs of $37,000 were incurred.

b. On March 31, 2018, a small storage building was donated to the company. The person donating the building originally purchased it three years ago for $35,000. The fair value of the building on the day of the donation was $21,000.

c. On May 1, 2018, expenditures of $59,000 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, 2018, 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 $46 per share. Pell paid legal fees and title insurance totaling $28,000. Shortly after acquisition, the building was razed at a cost of $44,000 in anticipation of new building construction in 2019.

e. On December 1, Pell junked a machine with a cost of $20,500 and a book value of $4,100 at December 31, 2017. Pell had to pay $550 to have it hauled away.

f. On December 31, 2018, Pell purchased a small storage building by giving $17,550 cash and an old automobile purchased for $22,000 on January 1, 2017. The fair value of the old automobile was $4,150.

Required:

1. Show labelled calculations for the changes in each of the plant assets for each lettered transaction above.

2. Determine how much any gain or loss from any asset disposal that would be shown in the income statement

3. Depreciation is computed to the nearest month and residual values are immaterial. For each asset classification, prepare a schedule showing depreciation for the year ended December 31, 2018, using the following depreciation methods and useful lives:

Land improvementsstraight line; 15 years.

Buildingdouble-declining balance; 20 years.

Machinery and equipmentstraight line; 10 years.

Automobilessum-of-the-years-digits; 3 years.