The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2017 Plant Asset Accumulated Depreciation Land $ 470,000 $ Land improvements 240,000 57,000 Building 2,100,000 362,000 Machinery and equipment 1,182,000 417,000 Automobiles 210,000 124,000 Transactions during 2018 were as follows On January 2, 2018, machinery and equipment were purchased at a total invoice cost of $320,000, which included a $6,700 charge for freight Installation costs of $39,000 were incurred On March 31, 2018, a small storage building was donated to the company The person donating the building originally purchased it three years ago for $31,000 The fair value of the building on the day of the donation was $20,500 On May 1, 2018, expenditures of $62,000 were made to repave parking lots at Pells plant location The work was necessitated by damage caused by severe winter weather On November 1, 2018, Pell acquired a tract of land with an existing building in exchange for 10,000 shares of Pell's common stock that had a market price of $40 per share Pell paid legal fees and title insurance totaling $35,000 Shortly after acquisition, the building was razed at a cost of $47,000 in anticipation of new building construction in 2019 On December 31, 2018, Pell purchased a small storage building by giving $16,450 cash and an old automobile purchased for $24,000 in 2014 Depreciation on the old automobile recorded through December 31, 2018, totaled $14,700 The fair value of the old automobile was $4,950 Required Prepare a schedule analyzing the changes in each of the plant assets during 2018 PELL CORPORATION Analysis of Changes in Plant Assets For the Year Ended December 31, 2018 Balance Balance 12 31 2018 12 31 2017 Increase Decrease $ 482,000 $ $ Land 470,000 0 952,000 Land improvements 240,000 0 240,000 Building 2,100,000 41,900 0 2,141,900 $ 0 Machinery and equipment 359,000 1,541,000 1,182,000 0 210,000 9,300 Automobiles 0 200,700 $4,202,000 $ 5,075,600 9,300 882,900 Totals

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 11, 2024

The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2017: Plant Asset Accumulated Depreciation Land $ 470,000

The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2017:

	Plant Asset		Accumulated Depreciation
Land	$	470,000	$
Land improvements		240,000		57,000
Building		2,100,000		362,000
Machinery and equipment		1,182,000		417,000
Automobiles		210,000		124,000

Transactions during 2018 were as follows:

On January 2, 2018, machinery and equipment were purchased at a total invoice cost of $320,000, which included a $6,700 charge for freight. Installation costs of $39,000 were incurred.
On March 31, 2018, a small storage building was donated to the company. The person donating the building originally purchased it three years ago for $31,000. The fair value of the building on the day of the donation was $20,500.
On May 1, 2018, expenditures of $62,000 were made to repave parking lots at Pells plant location. The work was necessitated by damage caused by severe winter weather.
On November 1, 2018, Pell acquired a tract of land with an existing building in exchange for 10,000 shares of Pell's common stock that had a market price of $40 per share. Pell paid legal fees and title insurance totaling $35,000. Shortly after acquisition, the building was razed at a cost of $47,000 in anticipation of new building construction in 2019.
On December 31, 2018, Pell purchased a small storage building by giving $16,450 cash and an old automobile purchased for $24,000 in 2014. Depreciation on the old automobile recorded through December 31, 2018, totaled $14,700. The fair value of the old automobile was $4,950.

Required: Prepare a schedule analyzing the changes in each of the plant assets during 2018.

image text in transcribed

PELL CORPORATION Analysis of Changes in Plant Assets For the Year Ended December 31, 2018 Balance Balance 12/31/2018 12/31/2017 Increase Decrease $ 482,000 $ $ Land 470,000 0 952,000 Land improvements 240,000 0 240,000 Building 2,100,000 41,900 0 2,141,900 $ 0 Machinery and equipment 359,000 1,541,000 1,182,000 0 210,000 9,300 Automobiles 0 200,700 $4,202,000 $ 5,075,600 9,300 882,900 Totals