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Problem 10-3 (Algo) Acquisition costs [LO10-1, 10-4, 10-6] The plant asset and accumulated depreclation accounts of Pell Corporation had the following balances at December 31,
Problem 10-3 (Algo) Acquisition costs [LO10-1, 10-4, 10-6] The plant asset and accumulated depreclation accounts of Pell Corporation had the following balances at December 31, 2023: Transactlons during 2024 were as follows: a. On January 2, 2024, equipment was purchased at a total Involce cost of $265,000, which Included a $5,600 charge for freight. Installation costs of $28,000 were incurred In addition to the Invoice cost. b. On March 31,2024 , a small storage bullding was donated to the company. The person donating the bullding originally purchased it three years ago for $20,000. The falr value of the building on the day of the donation was $15,000 c. On May 1, 2024, expenditures of $51,000 were made to repave parking lots at Pell's plant location. The work was necessitated by damage caused by severe winter weather. The repalr doesn't provide future benefits beyond those originally anticipated. d. On November 1,2024 , Pell acquired a tract of land with an existing bullding in exchange for 10,000 shares of Pell's common stock that had a market price of $35 per share. Pell pald legal fees and ttle Insurance totaling $24,000. Shortly after acquisition, the bullding was razed at a cost of $36,000 in antlcipation of new bullding construction in 2025. e. On December 31,2024 , Pell purchased a small storage bullding by giving $15,450 cash and an old automobile purchased for $18,500 in 2017. Depreclation on the old automobile recorded through December 31,2024 , totaled $13,600. The falr value of the old automoblle was $3,850. Requlred: Prepare a schedule analyzing the changes in each of the plant assets during 2024
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