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At December 31, 2023, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances as follows: Category Land Land improvements Buildings Equipment Automobiles and trucks Leasehold improvements Plant Asset $ 167,000 1,100,000 725,000 164,000 200,000 Accumulated Depreciation and Amortization $- 241,176 309,500 92,325 100,000 Depreciation methods and useful lives: Buildings-150% declining balance; 25 years. Equipment Straight line; 10 years. Automobiles and trucks-200% declining balance; 5 years, all acquired after 2020. Leasehold improvements-Straight line. Land improvements-Straight line. Depreciation is computed to the nearest month and residual values are immaterial. Transactions during 2024 and other information: a. On January 6, 2024, a plant facility consisting of land and building was acquired from King Corporation in exchange for 17,000 shares of Cord's common stock. On this date, Cord's stock had a fair value of $50 a share. Current assessed values of land and building for property tax purposes are $167,500 and $502,500, respectively.

At December 31, 2023, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances as follows: Category Land Land improvements Buildings Equipment Automobiles and trucks Leasehold improvements Plant Asset $ 167,000 1,100,000 725,000 164,000 200,000 Accumulated Depreciation and Amortization $- 241,176 309,500 92,325 100,000 Depreciation methods and useful lives: Buildings-150% declining balance; 25 years. Equipment Straight line; 10 years. Automobiles and trucks-200% declining balance; 5 years, all acquired after 2020. Leasehold improvements-Straight line. Land improvements-Straight line. Depreciation is computed to the nearest month and residual values are immaterial. Transactions during 2024 and other information: a. On January 6, 2024, a plant facility consisting of land and building was acquired from King Corporation in exchange for 17,000 shares of Cord's common stock. On this date, Cord's stock had a fair value of $50 a share. Current assessed values of land and building for property tax purposes are $167,500 and $502,500, respectively.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Prepare a schedule analyzing the changes in each of the plant asset accounts during 2024. Do not analyze changes in accumulated depreciation and amortization. Land Land improvements Buildings Equipment Automobiles and trucks Leasehold improvements Show Transcribed Text CORD COMPANY Analysis of Changes in Plant Assets For the Year Ending December 31, 2024 Balance 12/31/2023 Increase $ $ 167,000 0 1,100,000 725,000 164,000 200,000 2,356,000 CORD COMPANY Depreciation and Amortization Expense For the Year Ending December 31, 2024 Land Improvements Buildings Equipment Automobiles and trucks Leasehold improvements Total depreciation and amortization expense for 2024 Decrease For each asset category, prepare a schedule showing depreciation or amortization expense for the year ended December 31, 2024. Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar. Balance 12/31/2024
Transcribed Image Text:Prepare a schedule analyzing the changes in each of the plant asset accounts during 2024. Do not analyze changes in accumulated depreciation and amortization. Land Land improvements Buildings Equipment Automobiles and trucks Leasehold improvements Show Transcribed Text CORD COMPANY Analysis of Changes in Plant Assets For the Year Ending December 31, 2024 Balance 12/31/2023 Increase $ $ 167,000 0 1,100,000 725,000 164,000 200,000 2,356,000 CORD COMPANY Depreciation and Amortization Expense For the Year Ending December 31, 2024 Land Improvements Buildings Equipment Automobiles and trucks Leasehold improvements Total depreciation and amortization expense for 2024 Decrease For each asset category, prepare a schedule showing depreciation or amortization expense for the year ended December 31, 2024. Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar. Balance 12/31/2024
At December 31, 2023, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances as follows: Accumulated Depreciation and Amortization $- Category Land Land improvements Buildings. Equipment Automobiles and trucks Leasehold improvements Plant Asset $ 167,000 Show Transcribed Text 1,100,000 725,000 164,000 200,000 241,176 309,500 92,325 100,000 Depreciation methods and useful lives: Buildings-150% declining balance; 25 years. Equipment Straight line; 10 years. Automobiles and trucks-200% declining balance; 5 years, all acquired after 2020. Leasehold improvements-Straight line. Land improvements-Straight line. Depreciation is computed to the nearest month and residual values are immaterial. Transactions during 2024 and other information: a. On January 6, 2024, a plant facility consisting of land and building was acquired from King Corporation in exchange for 17,000 shares of Cord's common stock. On this date, Cord's stock had a fair value of $50 a share. Current assessed values of land and building for property tax purposes are $167,500 and $502,500, respectively. Ć b. On March 25, 2024, new parking lots, streets, and sidewalks at the acquired plant facility were completed at a total cost of $144,000. These expenditures had an estimated useful life of 12 years. c. The leasehold improvements were completed on December 31, 2020, and had an estimated useful life of eight years. The related lease, which would terminate on December 31, 2026, was renewable for an additional four-year term. On April 30, 2024, Cord exercised the renewal option. d. On July 1, 2024, equipment was purchased at a total invoice cost of $317,000. Additional costs of $10,000 for delivery and $42,000 for installation were incurred. e. On September 30, 2024, Cord purchased a new automobile for $11,700. f. On September 30, 2024, a truck with a cost of $23,200 and a book value of $7,600 on date of sale was sold for $10,700. Depreciation for the nine months ended September 30, 2024, was $1,710. g. On December 20, 2024, equipment with a cost of $13,000 and a book value of $2,775 at date of disposition was scrapped without cash recovery. Required: 1. Prepare a schedule analyzing the changes in each of the plant asset accounts during 2024. Do not analyze changes in accumulated depreciation and amortization. 2. For each asset category, prepare a schedule showing depreciation or amortization expense for the year ended December 31, 2024.
Transcribed Image Text:At December 31, 2023, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances as follows: Accumulated Depreciation and Amortization $- Category Land Land improvements Buildings. Equipment Automobiles and trucks Leasehold improvements Plant Asset $ 167,000 Show Transcribed Text 1,100,000 725,000 164,000 200,000 241,176 309,500 92,325 100,000 Depreciation methods and useful lives: Buildings-150% declining balance; 25 years. Equipment Straight line; 10 years. Automobiles and trucks-200% declining balance; 5 years, all acquired after 2020. Leasehold improvements-Straight line. Land improvements-Straight line. Depreciation is computed to the nearest month and residual values are immaterial. Transactions during 2024 and other information: a. On January 6, 2024, a plant facility consisting of land and building was acquired from King Corporation in exchange for 17,000 shares of Cord's common stock. On this date, Cord's stock had a fair value of $50 a share. Current assessed values of land and building for property tax purposes are $167,500 and $502,500, respectively. Ć b. On March 25, 2024, new parking lots, streets, and sidewalks at the acquired plant facility were completed at a total cost of $144,000. These expenditures had an estimated useful life of 12 years. c. The leasehold improvements were completed on December 31, 2020, and had an estimated useful life of eight years. The related lease, which would terminate on December 31, 2026, was renewable for an additional four-year term. On April 30, 2024, Cord exercised the renewal option. d. On July 1, 2024, equipment was purchased at a total invoice cost of $317,000. Additional costs of $10,000 for delivery and $42,000 for installation were incurred. e. On September 30, 2024, Cord purchased a new automobile for $11,700. f. On September 30, 2024, a truck with a cost of $23,200 and a book value of $7,600 on date of sale was sold for $10,700. Depreciation for the nine months ended September 30, 2024, was $1,710. g. On December 20, 2024, equipment with a cost of $13,000 and a book value of $2,775 at date of disposition was scrapped without cash recovery. Required: 1. Prepare a schedule analyzing the changes in each of the plant asset accounts during 2024. Do not analyze changes in accumulated depreciation and amortization. 2. For each asset category, prepare a schedule showing depreciation or amortization expense for the year ended December 31, 2024.
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