PELL CORPORATION Plant asset and accumulated depreciation accounts Balances at December 31, 2015: Land Land improvements Building Machinery and equipment Automobiles Plant Assets $ 350,000 180,000 1,500,000 1,158,000 150,000 Accumulated Depreciation $ - 45,000 350,000 405,000 112,000 $$$$$$$ Transactions during 2016: Machinery and equipment purchase Freight charge (included in purchase price above) Installation costs Machine purchase, 2012 Machine selling price, 2016 Depreciation through date of sale Repaving cost Common shares exchanged for land Market price per share Legal fees and title insurance Cost to raze building New automobile cost Old automobile cost Old automobile depreciation Old automobile fair value 260,000 5,500 27,000 58,000 36,500 24,650 50,000 10,000 38 23,000 35,000 15,250 18,000 13,500 3,750 $ $ $ $ $ $ $ Land improvements Building Machinery and equipment Automobiles Useful Life (years) 15 20 10 3 Depreciation Method Straight-line 150% Declining balance Straight-line 150% Declining balance Required: For each asset classification, prepare a schedule showing depreciation for the year ended December 31, 2016, using the following depreciation methods and useful lives: Land improvementsStraight line; 15 years. Building-150% declining balance; 20 years. Machinery and equipmentStraight line; 10 years. Automobiles150% declining balance; 3 years. Depreciation is computed to the nearest month and no residual values are used. PELL CORPORATION Depreciation Expense For the Year Ended December 31, 2016 Land Improvements Cost Straight-line rate Building: Book value 12/31/2015 150% declining balance rate Machinery and Equipment: Balance, 12/31/2015 Deduct machine sold Straight-line rate Purchased 1/2/2016 Depreciation Machine sold 3/31/2016 Depreciation for three months Total depreciation on machinery and equipment Automobiles: Book value on 12/31/2015 150% declining balance rate Total depreciation expense for 2016