The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2020 Plant Asset Accumulated Depreciation Land $ 490,000 $ Land improvements 250,000 59,000 Building 2,200,000 364,000 Equipment 1,186,000 419,000 Automobiles 220,000 126,000 Transactions during 2021 were as follows On January 2, 2021, equipment were purchased at a total invoice cost of $330,000, which included a $6,900 charge for freight Installation costs of $41,000 were incurred On March 31, 2021, a small storage building was donated to the company The person donating the building originally purchased it three years ago for $33,000 The fair value of the building on the day of the donation was $21,500 On May 1, 2021, expenditures of $64,000 were made to repave parking lots at Pells plant location The work was necessitated by damage caused by severe winter weather The repair doesnt provide future benefits beyond those originally anticipated On November 1, 2021, 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 $36 per share Pell paid legal fees and title insurance totaling $37,000 Shortly after acquisition, the building was razed at a cost of $49,000 in anticipation of new building construction in 2022 On December 31, 2021, Pell purchased a small storage building by giving $16,650 cash and an old automobile purchased for $25,000 in 2014 Depreciation on the old automobile recorded through December 31, 2021, totaled $14,900 The fair value of the old automobile was $5,150 Required Prepare a schedule analyzing the changes in each of the plant assets during 2021 PELL CORPORATION Analysis of Changes in Plant Assets For the Year Ended December 31, 2021 Balance Balance 12 31 2020 Increase Decrease 12 31 2021 Land $ $ 446,000 $ 490,000 250,000 2,200,000 936,000 250,000 Land improvements Building Equipment 371,000 Automobiles 1,186,000 220,000 4,346,000 25,000 25,000 Totals $ $ 817,000 $ $ 1,186,000

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, 2020: Plant Asset Accumulated Depreciation Land $ 490,000

The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2020:

	Plant Asset		Accumulated Depreciation
Land	$	490,000	$
Land improvements		250,000		59,000
Building		2,200,000		364,000
Equipment		1,186,000		419,000
Automobiles		220,000		126,000

Transactions during 2021 were as follows:

On January 2, 2021, equipment were purchased at a total invoice cost of $330,000, which included a $6,900 charge for freight. Installation costs of $41,000 were incurred.
On March 31, 2021, a small storage building was donated to the company. The person donating the building originally purchased it three years ago for $33,000. The fair value of the building on the day of the donation was $21,500.
On May 1, 2021, expenditures of $64,000 were made to repave parking lots at Pells plant location. The work was necessitated by damage caused by severe winter weather. The repair doesnt provide future benefits beyond those originally anticipated.
On November 1, 2021, 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 $36 per share. Pell paid legal fees and title insurance totaling $37,000. Shortly after acquisition, the building was razed at a cost of $49,000 in anticipation of new building construction in 2022.
On December 31, 2021, Pell purchased a small storage building by giving $16,650 cash and an old automobile purchased for $25,000 in 2014. Depreciation on the old automobile recorded through December 31, 2021, totaled $14,900. The fair value of the old automobile was $5,150.

Required: Prepare a schedule analyzing the changes in each of the plant assets during 2021.

image text in transcribed

PELL CORPORATION Analysis of Changes in Plant Assets For the Year Ended December 31, 2021 Balance Balance 12/31/2020 Increase Decrease 12/31/2021 Land $ $ 446,000 $ 490,000 250,000 2,200,000 936,000 250,000 Land improvements Building Equipment 371,000 Automobiles 1,186,000 220,000 4,346,000 25,000 25,000 Totals $ $ 817,000 $ $ 1,186,000