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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 Pell's 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.
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