Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2023: Transactions during 2024 were as follows: a.
The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2023: Transactions during 2024 were as follows: a. On January 2, 2024, equipment were purchased at a total invoice cost of $215,000, which included a $4,600 charge for freight. Installation costs of $18,000 were incurred in addition to the invoice cost. b. On March 31, 2024, a small storage building was donated to the company. The person donating the building originally purchased it three years ago for $16,000. The fair value of the building on the day of the donation was $12,400. c. On May 1, 2024, expenditures of $41,000 were made to repave parking lots at Pell's plant location. The work was necessitated by damage caused by severe winter weather. The repair doesn't provide future benefits beyond those originally anticipated. d. On November 1, 2024, 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 $29 per share. Pell paid legal fees and title insurance totaling $18,500. Shortly after acquisition, the building was razed at a cost of $26,000 in anticipation of new building construction in 2025 . for $13,500 in 2017 . Depreciation on the old automobile recorded through December 31,2024 , totaled $10,125. The fair value of the old automobile was $3,300. Required: For each asset classification, prepare a schedule showing depreciation for the year ended December 31, 2024, using the ollowing depreciation methods and useful lives: and improvements-Straight line; 15 years. 3uilding-150\% declining balance; 20 years. Equipment-Straight line; 10 years. Automobiles-Units-of-production; $0.50 per mile Depreciation is computed to the nearest month and no residual values are used. Automobiles were driven 33,500 miles in 2024. Note: Do not round intermediate calculations and round your final answers to 2 decimal places. Depreciation is computed to the nearest month and no residual values are used. Automobiles were driven 33,500 miles in 2024. Note: Do not round intermediate calculations and round your final answers to 2 decimal places
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