Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 11-2 (Algo) Comprehensive problem; Chapters 10 and 11 [LO11-2, 11-4) At December 31, 2020, Cord Company's plant asset and accumulated depreciation and amortization accounts

image text in transcribed
Problem 11-2 (Algo) Comprehensive problem; Chapters 10 and 11 [LO11-2, 11-4) At December 31, 2020, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances as follo cumulated Depreciation tization Category Land Buildings Equipment Automobiles and trucks Leasehold improvements Plant Asset $ 165,000 1,000,000 625,000 162,00 196,000 318.900 307,500 90, 325 98,000 Depreciation methods and useful lives: Buildings-150% declining balance: 25 years Equipment-Straight line: 10 years. Automobiles and trucks-200% declining balance 5 years, all acquired after 2017 Leasehold improvements-Straight line, Land improvements-Straight line. Depreciation is computed to the nearest month and residual values are immaterial. Transactions during 2021 and other information: a on January 6, 2021. a plant facility consisting of land and building was acquired from King Corp. in exchange for 15,000 shares of Cord's common stock. On this date, Cord's stock had a fair value of $40 a share. Current assessed values of land and building for property tax purposes are $130.000 and $520.000, respectively b. On March 25, 2021. new parking lots, streets, and sidewalks at the acquired plant facility were completed at a total cost of $132.00 These expenditures had an estimated useful life of 12 years. c. The leasehold improvements were completed on December 31, 2017 and had an estimated useful life of eight years. The related lease, which would terminate on December 31, 2023 was renewable for an additional four-year term. On April 30, 2021. Cord exercised the renewal option d On July 1, 2021, equipment was purchased at a total invoice cost of $315,000. Additional costs of $12.000 for delivery and $40,000 for installation were incurred e. On September 30, 2021. Cord purchased a new automobile for $11.500. f. On September 30, 2021, a truck with a cost of $23.000 and a book value of $7200 on date of sale was sold for $10,500. Depreciation for the nine months ended September 30, 2021, was $1620. g. On December 20, 2021 equipment with a cost of $12,000 and a book value of $2.725 at date of disposition was scrapped without Problem 11-2 (Algo) Comprehensive problem; Chapters 10 and 11 [LO11-2, 11-4) At December 31, 2020, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances as follo cumulated Depreciation tization Category Land Buildings Equipment Automobiles and trucks Leasehold improvements Plant Asset $ 165,000 1,000,000 625,000 162,00 196,000 318.900 307,500 90, 325 98,000 Depreciation methods and useful lives: Buildings-150% declining balance: 25 years Equipment-Straight line: 10 years. Automobiles and trucks-200% declining balance 5 years, all acquired after 2017 Leasehold improvements-Straight line, Land improvements-Straight line. Depreciation is computed to the nearest month and residual values are immaterial. Transactions during 2021 and other information: a on January 6, 2021. a plant facility consisting of land and building was acquired from King Corp. in exchange for 15,000 shares of Cord's common stock. On this date, Cord's stock had a fair value of $40 a share. Current assessed values of land and building for property tax purposes are $130.000 and $520.000, respectively b. On March 25, 2021. new parking lots, streets, and sidewalks at the acquired plant facility were completed at a total cost of $132.00 These expenditures had an estimated useful life of 12 years. c. The leasehold improvements were completed on December 31, 2017 and had an estimated useful life of eight years. The related lease, which would terminate on December 31, 2023 was renewable for an additional four-year term. On April 30, 2021. Cord exercised the renewal option d On July 1, 2021, equipment was purchased at a total invoice cost of $315,000. Additional costs of $12.000 for delivery and $40,000 for installation were incurred e. On September 30, 2021. Cord purchased a new automobile for $11.500. f. On September 30, 2021, a truck with a cost of $23.000 and a book value of $7200 on date of sale was sold for $10,500. Depreciation for the nine months ended September 30, 2021, was $1620. g. On December 20, 2021 equipment with a cost of $12,000 and a book value of $2.725 at date of disposition was scrapped without

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

Explain the factors influencing wage and salary administration.

Answered: 1 week ago

Question

Examine various types of executive compensation plans.

Answered: 1 week ago

Question

1. What is the meaning and definition of banks ?

Answered: 1 week ago

Question

2. What is the meaning and definition of Banking?

Answered: 1 week ago