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Depreciation is computed to the nearest month and no residual values are used. Automobiles were driven 36,500 miles in 2024. Note: Do not round intermediate calculations and round your final answers to 2 decimal places.

Depreciation is computed to the nearest month and no residual values are used. Automobiles were driven 36,500 miles in 2024. Note: Do not round intermediate calculations and round your final answers to 2 decimal places.

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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The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2023: Plant Asset Accumulated Depreciation $ 335,000 175,500 1,470,000 1,128,000 147,000 Land Land improvements Building Equipment Automobiles Transactions during 2024 were as follows: a. On January 2, 2024, equipment were purchased at a total invoice cost of $245,000, which included a $5,200 charge for freight. Installation costs of $24,000 were incurred in addition to the invoice cost. b. On March 31, 2024, a small storage building was donated to the company. The person donating the building originally purchased it three years ago for $22,000. The fair value of the building on the day of the donation was $15,400. c. On May 1, 2024, expenditures of $47,000 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 originally anticipated. d. On November 1, 2024, Pell acquired a tract of land with an existing building in exchange for 10,000 shares Pell's common stock that had a market price of $35 per share. Pell paid legal fees and title insurance totaling $21,500. Shortly after acquisition, the building was razed at a cost of $32,000 in anticipation of new building construction in 2025. e. On December 31, 2024, Pell purchased a small storage building by giving $14,500 cash and an old automobile purchased for $16,500 in 2017. Depreciation on the old automobile recorded through December 31, 2024, totaled $12,375. The fair value of the old automobile was $3,600. Required: For each asset classification, prepare a schedule showing depreciation for the year ended December 31, 2024, using the following depreciation methods and useful lives: Land improvements-Straight line; 15 years. Building-150% declining balance; 20 years. Equipment Straight line; 10 years. Automobiles-Units-of-production; $0.50 per mile $0 42,000 393,822 390,000 110,500 Depreciation is computed to the nearest month and no residual values are used. Automobiles were driven 36,500 miles in 2024. Note: Do not round intermediate calculations and round your final answers to 2 decimal places. PELL CORPORATION Depreciation For the Year Ended December 31, 2024 Land Improvements Building Equipment Automobiles Total depreciation for 2024 $ 0.00
Transcribed Image Text:The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2023: Plant Asset Accumulated Depreciation $ 335,000 175,500 1,470,000 1,128,000 147,000 Land Land improvements Building Equipment Automobiles Transactions during 2024 were as follows: a. On January 2, 2024, equipment were purchased at a total invoice cost of $245,000, which included a $5,200 charge for freight. Installation costs of $24,000 were incurred in addition to the invoice cost. b. On March 31, 2024, a small storage building was donated to the company. The person donating the building originally purchased it three years ago for $22,000. The fair value of the building on the day of the donation was $15,400. c. On May 1, 2024, expenditures of $47,000 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 originally anticipated. d. On November 1, 2024, Pell acquired a tract of land with an existing building in exchange for 10,000 shares Pell's common stock that had a market price of $35 per share. Pell paid legal fees and title insurance totaling $21,500. Shortly after acquisition, the building was razed at a cost of $32,000 in anticipation of new building construction in 2025. e. On December 31, 2024, Pell purchased a small storage building by giving $14,500 cash and an old automobile purchased for $16,500 in 2017. Depreciation on the old automobile recorded through December 31, 2024, totaled $12,375. The fair value of the old automobile was $3,600. Required: For each asset classification, prepare a schedule showing depreciation for the year ended December 31, 2024, using the following depreciation methods and useful lives: Land improvements-Straight line; 15 years. Building-150% declining balance; 20 years. Equipment Straight line; 10 years. Automobiles-Units-of-production; $0.50 per mile $0 42,000 393,822 390,000 110,500 Depreciation is computed to the nearest month and no residual values are used. Automobiles were driven 36,500 miles in 2024. Note: Do not round intermediate calculations and round your final answers to 2 decimal places. PELL CORPORATION Depreciation For the Year Ended December 31, 2024 Land Improvements Building Equipment Automobiles Total depreciation for 2024 $ 0.00
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