The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2023: Land Land improvements Building Equipment Automobiles Plant Asset Accumulated Depreciation $ 370,000 186,000 1,540,000 1,198,000 $ 0 49,000 412,575 154,000 425,000 114,000 Transactions during 2024 were as follows: a. On January 2, 2024, equipment were purchased at a total invoice cost of $280,000, which included a $5,900 charge for freight. Installation costs of $31,000 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 $29,000. The fair value of the building on the day of the donation was $19,000. c. On May 1, 2024, expenditures of $54,000 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 of Pell's common stock that had a market price of $42 per share. Pell paid legal fees and title insurance totaling $25,000. Shortly after acquisition, the building was razed at a cost of $39,000 in anticipation of new building construction in 2025. e. On December 31, 2024, Pell purchased a small storage building by giving $16,250 cash and an old automobile purchased for $20,000 in 2017. Depreciation on the old automobile recorded through December 31, 2024, totaled $15,000. The fair value of the old automobile was $3,950. 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 Depreciation is computed to the nearest month and no residual values are used. Automobiles were driven 40,000 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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
Equipment
Automobiles
Plant Asset
Accumulated Depreciation
$ 370,000
186,000
1,540,000
1,198,000
$ 0
49,000
412,575
154,000
425,000
114,000
Transactions during 2024 were as follows:
a. On January 2, 2024, equipment were purchased at a total invoice cost of $280,000, which included a $5,900 charge for freight.
Installation costs of $31,000 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 $29,000. The fair value of the building on the day of the donation was $19,000.
c. On May 1, 2024, expenditures of $54,000 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 of Pell's common
stock that had a market price of $42 per share. Pell paid legal fees and title insurance totaling $25,000. Shortly after acquisition,
the building was razed at a cost of $39,000 in anticipation of new building construction in 2025.
e. On December 31, 2024, Pell purchased a small storage building by giving $16,250 cash and an old automobile purchased for
$20,000 in 2017. Depreciation on the old automobile recorded through December 31, 2024, totaled $15,000. The fair value of
the old automobile was $3,950.
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
Depreciation is computed to the nearest month and no residual values are used. Automobiles were driven 40,000 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
Transcribed Image Text:The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2023: Land Land improvements Building Equipment Automobiles Plant Asset Accumulated Depreciation $ 370,000 186,000 1,540,000 1,198,000 $ 0 49,000 412,575 154,000 425,000 114,000 Transactions during 2024 were as follows: a. On January 2, 2024, equipment were purchased at a total invoice cost of $280,000, which included a $5,900 charge for freight. Installation costs of $31,000 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 $29,000. The fair value of the building on the day of the donation was $19,000. c. On May 1, 2024, expenditures of $54,000 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 of Pell's common stock that had a market price of $42 per share. Pell paid legal fees and title insurance totaling $25,000. Shortly after acquisition, the building was razed at a cost of $39,000 in anticipation of new building construction in 2025. e. On December 31, 2024, Pell purchased a small storage building by giving $16,250 cash and an old automobile purchased for $20,000 in 2017. Depreciation on the old automobile recorded through December 31, 2024, totaled $15,000. The fair value of the old automobile was $3,950. 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 Depreciation is computed to the nearest month and no residual values are used. Automobiles were driven 40,000 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
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