Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Transactions durting 2024 were as follows: a. On January 2.2024, equipment were purchased at a total involce cost of $275,000, which included a $5,800 charge

image text in transcribed
Transactions durting 2024 were as follows: a. On January 2.2024, equipment were purchased at a total involce cost of $275,000, which included a $5,800 charge for freight. installation costs of $30,000 were incurred in additton to the involce cost. b. On March 31,2024 , a small storage bulling was donated to the company. The person donating the bulding originally purchased it three years ago for $28,000. The fair value of the buliding on the day of the donation was $18,200. c. On May 1, 2024, expenditures of $53,000 were made to repave parking lots at Pell's plant location. The work was necessitated by damage caused by severe Winter weather. The repalr doesn't provide future benefits beyond those originally anticipated. d. On November 1, 2024, Pell acquired a tract of land with an existing bullding in exchange for 10,000 shares of Pell's common stock that had a market price of $41 per share. Pell paid legal fees and tile insurance totaling $24,500. Shortly after acquisition, the buliding was razed at a cost of $38,000 in anticipation of new buliding construction in 2025 . e. On December 31,2024 , Pell purchased a small storage bulding by giving $16.000 cash and an old automobile purchased for $19,500 in 2017 . Depreclation on the old automobile recorded through December 31,2024 , totaled $14,625. The fair value of the old automobile was $3,900. Required: For each asset classification, prepare a schedule showing depreclation for the year ended December 31, 2024, using the following depreciation methods and useful Iives: Land improvements-Straight line; 15 years. Burling- 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 39,500 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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sound Investing, Chapter 7 - Cash Versus Accrual

Authors: Kate Mooney

1st Edition

0071719296, 9780071719292

More Books

Students also viewed these Accounting questions

Question

Is there any other possible conclusion?

Answered: 1 week ago

Question

5. Explain how to install a performance management program.

Answered: 1 week ago