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Selected accounts included in the property, plant, and equipment section of Wildhorse Corporations balance sheet at December 31, 2019, had the following balances. Land $336,000
Selected accounts included in the property, plant, and equipment section of Wildhorse Corporations balance sheet at December 31, 2019, had the following balances.
Land | $336,000 | |
Land improvements | 156,800 | |
Buildings | 1,232,000 | |
Equipment | 1,075,200 |
During 2020, the following transactions occurred.
1. | A tract of land was acquired for $168,000 as a potential future building site. | |
2. | A plant facility consisting of land and building was acquired from Mendota Company in exchange for 22,400 shares of Wildhorses common stock. On the acquisition date, Wildhorses stock had a closing market price of $37 per share on a national stock exchange. The plant facility was carried on Mendotas books at $123,200 for land and $358,400 for the building at the exchange date. Current appraised values for the land and building, respectively, are $257,600 and $772,800. | |
3. | Items of machinery and equipment were purchased at a total cost of $448,000. Additional costs were incurred as follows. |
Freight and unloading | $14,560 | |
Sales taxes | 22,400 | |
Installation | 29,120 |
4. | Expenditures totaling $106,400 were made for new parking lots, streets, and sidewalks at the corporations various plant locations. These expenditures had an estimated useful life of 15 years. | |
5. | A machine costing $89,600 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 $22,400 on July 1, 2020. Original cost of the machine was $49,280 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 $2,240. |
(a) Calculate the balance at December 31, 2020 in each of the following balance sheet accounts. (Hint: Disregard the related accumulated depreciation accounts.)
Balance at December 31, 2020 | ||
Land | $ | |
Land Improvements | $ | |
Buildings | $ | |
Equipment | $ |
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