Transactions during 2016 were as follows:
a. On January 2, 2016, machinery and equipment were purchased at a total invoice cost of $295,000, which included a $6,200 charge for freight. Installation costs of $34,000 were incurred.
b. On March 31, 2016, a machine purchased for $65,000 in 2012 was sold for $43,500. Depreciation recorded through the date of sale totaled $25,700.
c. On May 1, 2016, expenditures of $57,000 were made to repave parking lots at Pell’s plant location. The work was necessitated by damage caused by severe winter weather.
d. On November 1, 2016, 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 $35 per share. Pell paid legal fees and title insurance totaling $30,000. Shortly after acquisition, the building was razed at a cost of $42,000 in anticipation of new building construction in 2017.
e. On December 31, 2016, Pell purchased a new automobile for $15,950 cash and trade-in of an old automobile purchased for $21,500 in 2012. Depreciation on the old automobile recorded through December 31, 2016, totaled $14,200. The fair value of the old automobile was $4,450.
- need a schedule analyzing the changes in each of the plant assets during 2016.
BALANCE 12/31/15:
Land $420,000
Land Improvements $215,000
Building $1,850,000
Machinery and Equipment $1,172,000
Automobiles $185,000
Totals $3,842,000
**NEED VALUES FOR INCREASE, DECREASE, AND BALANCE FROM 12/31/16
- need a schedule showing the gain or loss from each asset disposal that would be recognized in Pell’s income statement for the year ended December 31, 2016.
GAIN OR LOSS FROM PLANT ASSET DISPOSALS
FOR THE YEAR ENDED DECEMBER 31, 2016
Sale of machine of 3/31/16:
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–
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Trade-in of automobile on 12/31/16
