The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2012

Plant Asset

Accumulated Depreciation

Land

$

430,000

$

Land improvements

220,000

53,000

Building

1,900,000

358,000

Machinery and equipment

1,174,000

413,000

Automobiles

190,000

120,000

Transactions during 2013 were as follows:

a.

On January 2, 2013, machinery and equipment were purchased at a total invoice cost of $300,000, which included a $6,300 charge for freight. Installation costs of $35,000 were incurred.

b.

On March 31, 2013, a machine purchased for $66,000 in 2009 was sold for $44,500. Depreciation recorded through the date of sale totaled $25,850.

c.

On May 1, 2013, expenditures of $58,000 were made to repave parking lots at Pells plant location. The work was necessitated by damage caused by severe winter weather.

d.

On November 1, 2013, 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 $31,000. Shortly after acquisition, the building was razed at a cost of $43,000 in anticipation of new building construction in 2014.

e.

On December 31, 2013, Pell purchased a new automobile for $16,050 cash and trade-in of an old automobile purchased for $22,000 in 2009. Depreciation on the old automobile recorded through December 31, 2013, totaled $14,300. The fair value of the old automobile was $4,550.

Required:

1.

Prepare a schedule analyzing the changes in each of the plant assets during 2013. (show work)

PELL CORPORATION
Analysis of Changes in Plant Assets
For the Year Ended December 31, 2013
	Balance			Balance
	12/31/2012	Increase	Decrease	12/31/2013
Land	430,000
Land Improvements	220,000
Building	1,900,000
Machinery and equipment	1,174,000
Automobiles	190,000
TOTALS	3,914,000

2.

Prepare a schedule showing the gain or loss from each asset disposal that would be recognized in Pells income statement for the year ended December 31, 2013.

PELL CORPORATION
Gain or Loss from Plant Asset Disposals
For the Year Ended December 31, 2013
Sale of machine on 3/31/13
Trade-in of automobile on 12/31/13