Question

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 $ 510,000 260,000 2,300,000 1,190,000 230,000 61,000 366,000 421,000 128,000 Transactions during 2021 were as follows: a. On January 2, 2021, equipment were purchased at a total invoice cost of $340,000, which included a $7,100 charge for freight. Installation costs of $43,000 were incurred. b. On March 31, 2021, a small storage building was donated to the company. The person donating the building originally purchased it three years ago for $35,000. The fair value of the building on the day of the donation was $22,500. c. On May 1, 2021, expenditures of $66,000 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, 2021, 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 $38 per share. Pell paid legal fees and title insurance totaling $39,000. Shortly after acquisition, the building was razed at a cost of $51,000 in anticipation of new building construction in 2022. e. On December 31, 2021, Pell purchased a small storage building by giving $16,850 cash and an old automobile purchased for $26,000 in 2014. Depreciation on the old automobile recorded through December 31, 2021, totaled $15,100. The fair value of the old automobile was $5,350.

Answer 1

The fixed assets are those assets which are long term investment and generate income to organisation. The assets increased will be added to particular assets and assets decreased will be deducted from that particular asset.

PELL CORPORATION Analysis of changes in plant Assets for the year ended December 31, 2021 particular Balance(s) & 1 ) Palanga) 12/31 2020 Increase Decrease 12/30/2021 Land 5 10,000 470,000 9.80000 Land improvement 260,000 - 2,60,000 Building (2300,000 16850 2316,850 Equipment Automobile Totals 1190,000 383000 35000 1538000 230,000 26000 - 256000 4490,000 89.5850 35000 5359850 Increase in machinery and equipment - $ 340,000 + $43000 - $383000 cost of land increased =10ooosters -cloooo shapes & $38) + $39000t & 51000 - $380,000+ $39000 + $ 5.000 $ 470,oon