e. On December 31,$24,500 in 2014. Depreciation on the old automobile recorded through December 31, 2021old automobile was $5,050.Required:Prepare a schedule analyzing the changes in each of the plant assets during 2021.LandLand improvementsBuildingEquipmentAutomobilesTotalsPELL CORPORATIONAnalysis of Changes in Plant AssetsFor the Year Ended December 31, 2021Balance12/31/2020$ 480,000245,0002,150,000$1,184,000215,0004,274,000$Increase0 $DecreaseBalance12/31/20210 $0 heducation.com/ext/map/Problem 10-3 (Algo) Acquisition costs [LO10-1, 10-4, 10-6]LandLand improvementsThe plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2020:AccumulatedDepreciation$BuildingEquipmentAutomobilesPlant Asset$ 480,000245,0002,150,0001,184,000215,00058,000363,000418,000125,000group/Required:Prepare a schedule analyzing the changes in each of the plant assets during 2021.PELL CORPORATIONPuy9jalEEUNqiD5pfW-TaJ519tUvJobFf7Transactions 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 itthree 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 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 $35 per share. Pell paid legal fees and title insurance totaling $36,000. Shortly after acquisition, thebuilding was razed at a cost of $48,000 in anticipation of new building construction in 2022.e. On December 31, 2021, Pell purchased a small storage building by giving $16,550 cash and an old automobile purchased for$24,500 in 2014. Depreciation on the old automobile recorded through December 31, 2021, totaled $14,800. The fair value of theold automobile was $5,050.

Plant assets are those assets in which the business had made large investments over the period. It…

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 58,000 363,000 418,000 125,000 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 freig Installation costs of $40,000 were incurred. D. On March 31, 2021, a small storage building was donated to the company. The person donating the building originally purcha 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 necessitate damage 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 s that had a market price of $35 per share. Pell paid legal fees and title insurance totaling $36,000. Shortly after acquisition, th- building was razed at a cost of $48,000 in anticipation of new building construction in 2022. e. On December 31, 2021, Pell purchased a small storage building by giving $16,550 cash and an old automobile purchased for $24,500 in 2014. Depreciation on the old automobile recorded through December 31, 2021, totaled $14,800. The fair value of old automobile was $5,050. Required: repare a schedule analyzing the changes in each of the plant assets during 2021.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q