building was razed at a cost of $54,000 in anticipation of new building construction in 2022.e. On December 31, 2021, Pell purchased a small storage bullding by giving $17,150 cash and an old automobile purchased for$27,500 in 2014. Depreciation on the old automobile recorded through December 31, 2021, totaled $15,400. The fair value of theold automobile was $5,650.Required:Prepare a schedule analyzing the changes in each of the plant assets during 2021.O Answer is not complete.PELL CORPORATIONAnalysis of Changes in Plant AssetsFor the Year Ended December 31, 2021BalanceBalance12/31/2020IncreaseDecrease12/31/2021Land2$540,000$456,000 O$996,000 OLand improvements275,00069,000 X344,000 X2,503,250 X1,604,000 XBuilding2,450,00053,250Equipment1,196,000408,400 X217,500Automobiles245,000$ 4,706,0002$986,6502$$ 5,664,750Totals Problem 10-3 (Algo) Acquisition costs [LO10-1, 10-4, 10-6]The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2020:AccumulatedPlant Asset540,000275,0002,450,0001,196,000245,000Depreciation$64,000369,000424,000131,000Land$Land improvementsBuildingEquipmentAutomobilesTransactions during 2021 were as follows:a. On January 2, 2021, equipment were purchased at a total invoice cost of $355,000, which included a $7,400 charge for freight.Installation costs of $46,000 were incurred.b. On March 31, 2021, a small storage building was donated to the company. The person donating the building originally purchased itthree years ago for $38,000. The fair value of the building on the day of the donation was $24,000.c. On May 1, 2021, expenditures of $69,000 were made to repave parking lots at Pell's plant location. The work was necessitated bydamage caused by severe winter weather. The repair doesn't provide future benefits beyond those originally anticipated.d. On November 1, 2021, Pell acquired a tract of land with an existing building in exchange for 10,000 shares of Pell's common stockthat had a market price of $36 per share. Pell paid legal fees and title insurance totaling $42,000. Shortly after acquisition, thebuilding was razed at a cost of $54,000 in anticipation of new building construction in 2022.e. On December 31, 2021, Pell purchased a small storage building by giving $17,150 cash and an old automobile purchased for$27,500 in 2014. Depreciation on the old automobile recorded through December 31, 2021, totaled $15,400. The fair value of theold automobile was $5,650.Required:Prepare a schedule analyzing the changes in each of the plant assets during 2021.

The question is based on the concept of Cost Accounting.

building was razed at a cost of $54,000 in anticipation of new building construction in 2022. e. On December 31, 2021, Pell purchased a small storage bullding by giving $17,150 cash and an old automobile purchased for $27,500 in 2014. Depreciation on the old automobile recorded through December 31, 2021, totaled $15,400. The fair value of the old automobile was $5,650. Required: Prepare a schedule analyzing the changes in each of the plant assets during 2021. X Answer is not complete. PELL CORPORATION Analysis of Changes in Plant Assets For the Year Ended December 31, 2021 Balance Balance 12/31/2020 Increase Decrease 12/31/2021 Land 540,000 456,000 2$ 996,000 344.000

building was razed at a cost of $54,000 in anticipation of new building construction in 2022. e. On December 31, 2021, Pell purchased a small storage bullding by giving $17,150 cash and an old automobile purchased for $27,500 in 2014. Depreciation on the old automobile recorded through December 31, 2021, totaled $15,400. The fair value of the old automobile was $5,650. Required: Prepare a schedule analyzing the changes in each of the plant assets during 2021. X Answer is not complete. PELL CORPORATION Analysis of Changes in Plant Assets For the Year Ended December 31, 2021 Balance Balance 12/31/2020 Increase Decrease 12/31/2021 Land 540,000 456,000 2$ 996,000 344.000

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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