At December 31, 2017, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances as follows:
Category | Plant Asset | Accumulated Depreciation and Amortization |
|||||
Land | $ | 167,000 | $ | — | |||
Buildings | 1,100,000 | 320,900 | |||||
Machinery and equipment | 725,000 | 309,500 | |||||
Automobiles and trucks | 164,000 | 92,325 | |||||
Leasehold improvements | 200,000 | 100,000 | |||||
Land improvements | — | — | |||||
Depreciation methods and useful lives:
Buildings—150% declining balance; 25 years.
Machinery and equipment—Straight line; 10 years.
Automobiles and trucks—150% declining balance; 5 years, all
acquired after 2014.
Leasehold improvements—Straight line.
Land improvements—Straight line.
Depreciation is computed to the nearest month and residual values
are immaterial. Transactions during 2018 and other information:
Required:
1. Prepare a schedule analyzing the changes in
each of the plant asset accounts during 2018. Do not analyze
changes in accumulated depreciation and amortization.
2. For each asset category, prepare a schedule
showing depreciation or amortization expense for the year ended
December 31, 2018.
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1. Analyzing the changes in each of the plant asset: | |||||
Working: | |||||
a. | Fair Value of Shares | 17,000*$50 | $ 850,000 | ||
Allocation of $850,000 to Land and Building: | |||||
Price | % | Fair Value | Allocation | ||
Land | $ 167,500 | 25% | $ 850,000 | $ 212,500 | |
Building | $ 502,500 | 75% | $ 850,000 | $ 637,500 | |
Total | $ 670,000 | $ 850,000 | |||
b. | Land Improvement | $ 144,000 | |||
c. | No Impact | ||||
d. | Machiner Cost: | ||||
Purchase Price | $ 317,000 | ||||
Delivery | $ 10,000 | ||||
Installation | $ 42,000 | ||||
Total | $ 369,000 | ||||
e. | Automobile | $ 11,700 | |||
f. | Truck Sold | $ 23,200 | |||
g. | Machine Scrapped | $ 13,000 | |||
CORD COMPANY | |||||
Analysis of Changes in Plant Assets | |||||
For the Year Ending December 31, 2018 | |||||
Balance | Balance | ||||
12/31/17 | Increase | Decrease | 12/31/18 | ||
Land | $ 167,000 | $ 212,500 | $ - | $ 379,500 | |
Land improvements | $ - | $ 144,000 | $ - | $ 144,000 | |
Buildings | $ 1,100,000 | $ 637,500 | $ - | $ 1,737,500 | |
Machinery and equipment | $ 725,000 | $ 369,000 | $ 13,000 | $ 1,081,000 | |
Automobiles and trucks | $ 164,000 | $ 11,700 | $ 23,200 | $ 152,500 | |
Leasehold improvements | $ 200,000 | $ - | $ - | $ 200,000 | |
Total | $ 2,356,000 | $ 1,374,700 | $ 36,200 | $ 3,694,500 | |
2. Amortization and Depreciation: | |||||
Land Improvement: | |||||
Value | $ 144,000 | ||||
Life | 12 Year | ||||
Depreciation for | 9 Months | ||||
Depreciation | $144,000*1/12*9/12 | $ 9,000 | |||
Building: | |||||
25 Year Life,150% Decline | 1.50*1/25 | 6% | |||
For Full Year | ($1,100,000-$320,900)*6% | $ 46,746 | |||
New Building-Pur in January | $637,500*6% | $ 38,250 | |||
Total | $ 84,996 | ||||
Machinery and Equipment: | |||||
10 Year SLM | |||||
For Full Year | ($725,000-$13,000)/10 | $ 71,200 | |||
Addition Pur in Jul | $369,000*1/10*6/12 | $ 18,450 | |||
Deletion | $13,000*1/10 | $ 1,300 | |||
Total | $ 90,950 | ||||
Automobiles and Trucks: | |||||
5 Year Life,150% Decline | 1.50*1/5 | 30% | |||
For Full Year | ($164,000-$92,325)-((23,200-($10,700-$1,710)) | ||||
$57,465*30% | $ 17,240 | ||||
Addition-Pur in Aug | $11,700*30%*4/12 | $ 1,170 | |||
Deletion | given | $ 1,710 | |||
Total | $ 20,120 | ||||
Leashold: | (200000-100000)/(8-3) | $ 20,000 | |||
CORD COMPANY | |||||
Depreciation and Amortization Expense | |||||
For the Year Ending December 31, 2018 | |||||
Land Improvements | $ 9,000 | ||||
Buildings | $ 84,996 | ||||
Machinery and equipment | $ 90,950 | ||||
Automobiles and trucks | $ 20,120 | ||||
Leasehold improvements | $ 20,000 | ||||
Total depreciation and amortization expense for 2018 | $ 225,066 |
At December 31, 2017, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances...
At December 31, 2017, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances as follows: Category Plant Asset Accumulated Depreciation and Amortization Land $ 173,000 $ — Buildings 1,400,000 326,900 Machinery and equipment 1,025,000 315,500 Automobiles and trucks 170,000 98,325 Leasehold improvements 212,000 106,000 Land improvements — — Depreciation methods and useful lives: Buildings—150% declining balance; 25 years. Machinery and equipment—Straight line; 10 years. Automobiles and trucks—150% declining balance; 5 years, all acquired after 2014. Leasehold improvements—Straight...
At December 31, 2017, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances as follows: Accumulated Depreciation and Amortization Category Land Buildings Machinery and equipment Automobiles and trucks Leasehold improvements Land improvements Plant Asset $ 176,000 1,550,000 1,175,000 173,000 218,000 329,900 318,500 101,325 109,000 Depreciation methods and useful lives: Buildings-150% declining balance; 25 years. Machinery and equipment-Straight line; 10 years. Automobiles and trucks-150% declining balance; 5 years, all acquired after 2014. Leasehold improvements-Straight line. Land improvements-Straight line....
At December 31, 2017, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances as follows: Accumulated Depreciation Category Land Buildings Machinery and equipment Automobiles and trucks Leasehold improvements Land improvements Plant Asset 185,00e 2,808,600 1,625,000 182,000 236,000 and Amortizati 338,980 327,500 110,325 118,888 Depreciation methods and useful lives Buildings-150% declining balance, 25 years. Machinery and equipment-Straight line, 10 years. Automobiles and trucks-150% declining balance: 5 years, all acquired after 2014. Leasehold improvements-Straight line Land improvements -Straight line...
Check my work At December 31, 2017, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances as follows: Accumulated Depreciation and Amortization Category Land Buildings Machinery and equipment Automobiles and trucks Leasehold improvements Land improvements Plant Asset $ 167, eee 1,100,000 725,000 164,000 200,000 320,909 309,500 92,325 100,000 Depreciation methods and useful lives: Buildings--150% declining balance: 25 years. Machinery and equipment-Straight line: 10 years. Automobiles and trucks-150% declining balance, 5 years, all acquired after 2014 Leasehold improvements-Straight...
At December 31, 2020, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances as follows: Category Plant Asset Accumulated Depreciation and Amortization Land $ 170,000 $ — Buildings 1,250,000 323,900 Equipment 875,000 312,500 Automobiles and trucks 167,000 95,325 Leasehold improvements 206,000 103,000 Land improvements — — Depreciation methods and useful lives: Buildings—150% declining balance; 25 years. Equipment—Straight line; 10 years. Automobiles and trucks—200% declining balance; 5 years, all acquired after 2017. Leasehold improvements—Straight line. Land improvements—Straight line....
At December 31, 2015, Cord Company's plant asset and accumulated
depreciation and amortization accounts had balances as follows:
JUST NEED AUTO ANSWER MARKED IN RED RESOLVED.
At December 31, 2015, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances as follows: Category Land Buildings Machinery and equipment Automobiles and trucks Leasehold improvements Land improvements Plant Asset $ 169,000 1,200,000 825,000 166,000 204,000 Accumulated Depreciation and Amortization $ - 322,900 311,500 94,325 102,000 Depreciation methods and useful lives:...
At December 31, 2020, Cord Company's plant asset and accumulated
depreciation and amortization accounts had balances as follows:
Category
Plant Asset
Accumulated Depreciation
and Amortization
Land
$
185,000
$
—
Buildings
2,000,000
338,900
Equipment
1,625,000
327,500
Automobiles and trucks
182,000
110,325
Leasehold improvements
236,000
118,000
Land improvements
—
—
Depreciation methods and useful lives:
Buildings—150% declining balance; 25 years.
Equipment—Straight line; 10 years.
Automobiles and trucks—200% declining balance; 5 years, all
acquired after 2017.
Leasehold improvements—Straight line.
Land improvements—Straight line....
At December 31, 2020, Cord Company's plant asset and accumulated
depreciation and amortization accounts had balances as follows:
Category
Plant Asset
Accumulated Depreciation
and Amortization
Land
$
185,000
$
—
Buildings
2,000,000
338,900
Equipment
1,625,000
327,500
Automobiles and trucks
182,000
110,325
Leasehold improvements
236,000
118,000
Land improvements
—
—
Depreciation methods and useful lives:
Buildings—150% declining balance; 25 years.
Equipment—Straight line; 10 years.
Automobiles and trucks—200% declining balance; 5 years, all
acquired after 2017.
Leasehold improvements—Straight line.
Land improvements—Straight line....
At December 31, 2020, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances as follows: Category Land Buildings Equipment Automobiles and trucks Leasehold improvements Land improvements Plant Asset $ 178,000 1,650,000 1,275,000 175,000 Accumulated Depreciation and Amortization $ - 331,900 320,500 103,325 222,000 111,000 Depreciation methods and useful lives: Buildings—150% declining balance; 25 years. Equipment-Straight line; 10 years. Automobiles and trucks—200% declining balance; 5 years, all acquired after 2017. Leasehold improvements-Straight line. Land improvements-Straight line. Depreciation is...
At December 31, 2020, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances as follows: Category Land Buildings Equipment Automobiles and trucks Leasehold improvements Land improvements Plant Asset $ 185,000 2,000,000 1,625,000 182,000 Accumulated Depreciation and Amortization $ - 338,900 327,500 110,325 236,000 118,000 Depreciation methods and useful lives: Buildings—150% declining balance; 25 years. Equipment-Straight line; 10 years. Automobiles and trucks-200% declining balance; 5 years, all acquired after 2017. Leasehold improvements—Straight line. Land improvements-Straight line. Depreciation is...