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

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 5E: Comprehensive: Acquisition, Subsequent Expenditures, and Depreciation On January 2, 2019, Lapar...

See similar textbooks

Similar questions

heducation.com/ext/map/ Problem 10-3 (Algo) Acquisition costs [LO10-1, 10-4, 10-6] Land Land improvements The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2020: Accumulated Depreciation $ Building Equipment Automobiles Plant Asset $ 480,000 245,000 2,150,000 1,184,000 215,000 58,000 363,000 418,000 125,000 group/ Required: Prepare a schedule analyzing the changes in each of the plant assets during 2021. PELL CORPORATION Puy9jalEEUNqiD5pfW-TaJ519tUvJobFf7 Transactions during 2021 were as follows: a. On January 2, 2021, equipment were purchased at a total invoice cost of $325,000, which included a $6,800 charge for freight. Installation costs of $40,000 were incurred. b. On March 31, 2021, a small storage building was donated to the company. The person donating the building originally purchased it three years ago for $32,000. The fair value of the building on the day of the donation was $21,000. c. On May 1, 2021,…
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: Accumulated Depreciation $ Land Land improvements Building Equipment Automobiles Plant Asset $ 480,000 245,000 2,150,000 1,184,000 215,000 Transactions during 2021 were as follows: a. On January 2, 2021, equipment were purchased at a total invoice cost of $325,000, which included a $6,800 charge for freight. Installation costs of $40,000 were incurred. b. On March 31, 2021, a small storage building was donated to the company. The person donating the building originally purchased it three years ago for $32,000. The fair value of the building on the day of the donation was $21,000. c. On May 1, 2021, expenditures of $63,000 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…
Do not give image format
Exercises Required information Exercise 11-4 (Algo) Other depreciation methods [LO11-2] [The following information applies to the questions displayed below.] On January 1, 2021, the Allegheny Corporation purchased equipment for $343,000. The estimated service life of the equipment is 10 years and the estimated residual value is $24,000. The equipment is expected to produce 296,000 units during its life. Required: Calculate depreciation for 2021 and 2022 using each of the following methods. Exercise 11-4 (Algo) Part 3 3. Assume instead the equipment was purchased on October 1, 2021. Calculate depreciation for 2021 and 2022 using each of the two methods. Partial-year depreciation is calculated based on the number of months the asset is in service. (Do not round intermediate answers and round your answers to the nearest whole dollar amount.) Sum-of-the-years' digits One hundred fifty percent declining balance $ 2021 12,863 2022
Required information Exercise 11-2 (Algo) Depreciation methods [LO11-2] [The following information applies to the questions displayed below.] On January 1, 2024, the Allegheny Corporation purchased equipment for $134,000. The estimated service life of the equipment is 10 years and the estimated residual value is $2,000. The equipment is expected to produce 240,000 units during its life. Required: Calculate depreciation for 2024 and 2025 using each of the following methods. Exercise 11-2 (Algo) Part 2 2. Double-declining-balance. Formula Amount for 2024 Amount for 2025 Beginning Book Value $ $ Double-Declining-Balance Method x Proportion of Units Produced 203,000 X 192,850 x = Depreciation Expense 20% = 20% =
h
- What is the investment carrying amount at December 31, 2021? A. P1,920,000 B. P1,790,000 C. P1,730,000 D. P1,700,000 - Assume the excess of acquisition cost over the underlying equity acquired is due to a piece of equipment with remaining life of 5 years on the date of investment acquisition, and a straight-line depreciation basis, what is the investment carrying amount at December 31, 2021? A. P1,920,000 B. P1,790,000 C. P1,745,000 D. P1,730,000
Required information Exercise 11-3 (Algo) Depreciation methods partial periods [LO11-2] [The following information applies to the questions displayed below.] On October 1, 2021, the Allegheny Corporation purchased equipment for $148,000. The estimated service life of the equipment is 10 years and the estimated residual value is $5,000. The equipment is expected to produce 260,000 units during its life. Required: Calculate depreciation for 2021 and 2022 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service. Exercise 11-3 (Algo) Part 3 3. Units of production (units produced in 2021, 13,000; units produced in 2022, 28,000). (Round "Depreciation per unit rate" answers to 2 decimal places.) Select formula for Units of Production Depreciation: Calculate 2021 depreciation expense: Depreciation per unit rate Units produced in 2021 Depreciation in 2021 Calculate 2022 depreciation expense: Depreciation per unit rate…
Required information Exercise 11-3 (Algo) Depreciation methods partial periods [LO11-2] [The following information applies to the questions displayed below.] On October 1, 2021, the Allegheny Corporation purchased equipment for $148,000. The estimated service life of the equipment is 10 years and the estimated residual value is $5,000. The equipment is expected to produce 260,000 units during its life. Required: Calculate depreciation for 2021 and 2022 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service. Exercise 11-3 (Algo) Part 2 2. Double-declining-balance. Formula Amount for 2021 Amount for 2022 Choose Numerator: Beginning Book Value Answer is not complete. Double-Declining-Balance Method X Choose Denominator: X Double the Straight-line Rate % % X X X x Fraction of Year Fraction of Year 3/12 12/12 › › Depreciation Expense Depreciation Expense
Required information Exercise 11-3 (Algo) Depreciation methods partial periods [LO11-2] [The following information applies to the questions displayed below.] On October 1, 2021, the Allegheny Corporation purchased equipment for $233,000. The estimated service life of the equipment is 10 years and the estimated residual value is $2,000. The equipment is expected to produce 420,000 units during its life. Required: Calculate depreciation for 2021 and 2022 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service. Exercise 11-3 (Algo) Part 2 2. Double-declining-balance. X Answer is not complete. Double-Declining-Balance Method Fraction of Depreciation Expense Depreciation Expense Choose Numerator: Choose Denominator: !! Year Fraction of Year Formula Cost Minus Residual Straight-line Rate Amount for 2021 Amount for 2022 2$ 2 X x 3/12 11,650 %3D $ 2 X 10 X % 44,270 %3D
Compute the Carrying Amount of Other Asset on December 31, 2022
rr