INTER. ACCOUNTING - CONNECT+ALEKS ACCESS
10th Edition
ISBN: 9781264770335
Author: SPICELAND
Publisher: MCG
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The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2023:
Land
Land improvements
Building
Plant Asset
$ 460,000
235,000
2,050,000
1,180,000
Accumulated Depreciation
$ -
56,000
361,000
Equipment
Automobiles
205,000
416,000
123,000
Transactions during 2024 were as follows:
a. On January 2, 2024, equipment was purchased at a total invoice cost of $315,000, which included a $6,600 charge for freight.
Installation costs of $38,000 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 $30,000. The fair value of the building on the day of the donation was $20,000.
c. On May 1, 2024, expenditures of $61,000 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…
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