Pell Corporation's Property, Plant, and Equipment and

AICPA

Accumulated Depreciation accounts had the following balances at December $31,2018$:

Adapted

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 $2019$:

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.

On March $31,2019,$ a machine purchased for $$58,000$ on January $3,2015,$ was sold for $$36,500.$

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.

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 $2020.$

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 $2019,$ with detailed supporting computations. Disregard the related Accumulated Depreciation accounts. $5$ t$-$accounts recommeneded

For each asset classification, prepare a schedule showing depreciation expense for the year ended December $31,2019.$ must include all depreciable assets and deprecition calculations.

Prepare a schedule showing the gain or loss from each asset disposal that Pell would recognize in its income statement for the year ended December $31,2019.$ journal entries recomended showing work