Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Selected accounts included in the property, plant, and equipment section of Sheffield Corporation's balance sheet at December 31 , 2019 , had the following balances.
Selected accounts included in the property, plant, and equipment section of Sheffield Corporation's balance sheet at December 31 , 2019 , had the following balances. During 2020 , the following transactions occurred. 1. A tract of land was acquired for $165,000 as a potential future building site. 2. A plant facility consisting of land and building was acquired from Mendota Company in exchange for 22,000 shares of Sheffield's common stock. On the acquisition date, Sheffield's stock had a closing market price of $37 per share on a national stock exchange. The plant facility was carried on Mendota's books at $121,000 for land and $352,000 for the building at the exchange date. Current appraised values for the land and building, respectively, are $253,000 and $759,000. 3. Items of machinery and equipment were purchased at a total cost of $440,000. Additional costs were incurred as follows. 4. Expenditures totaling $104,500 were made for new parking lots, streets, and sidewalks at the corporation's various plant locations. These expenditures had an estimated useful life of 15 years. 5. A machine costing $88,000 on January 1,2012 , was scrapped on June 30 , 2020. Double-declining-balance depreciation has been recorded on the basis of a 10 -year life. 6. A machine was sold for $22,000 on July 1, 2020. Original cost of the machine was $48,400 on January 1,2017 , and it was depreciated on the straight-line basis over an estimated useful life of 7 years and a salvage value of $2,200. (a) Calculate the balance at December 31, 2020 in each of the following balance sheet accounts. (Hint: Disregard the related accumulated depreciation accounts.) Equipment $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started