Question

I've gone through a couple posts of this question. The answers don't jive. I've gotten all but 4 numbers.
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 $ 350,000 180,000 1,500,000 1,158,000 150,000 45,000 350,000 405,000 112,000 Transactions during 2021 were as follows: a. On January 2, 2021, equipment were purchased at a total invoice cost of $260,000, which included a $5,500 charge for freight. Installation costs of $27,000 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 $25,000. The fair value of the building on the day of the donation was $17,000. c. On May 1, 2021, expenditures of $50,000 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 $23,000. Shortly after acquisition, the building was razed at a cost of $35,000 in anticipation of new building construction in 2022. e. On December 31, 2021, Pell purchased a small storage building by giving $15,250 cash and an old automobile purchased for $18,000 in 2014. Depreciation on the old automobile recorded through December 31, 2021, totaled $13,500. The fair value of the old automobile was $3,750. Required: Prepare a schedule analyzing the changes in each of the plant assets during 2021.

Answer 1

Decrease Land Land Improvements Building PELL CORPORATION Analysis of Changes in Plant Assets For the Year Ended December 31, 2021 Balance 12/31/20 Increase 350,000 438,000 180,000 1,500,000 19,000 17,000 1,158,000 287,000 150,000 3,338,000 761,000 Balance 12/31/21 788,000 180,000 1,536,000 Machinery and equipment Automobiles Total 18,000 18,000 1,445,000 132,000 4,081,000

Working Notes: Increase in Land: Issue of common stock (10,000 x 38) Legal fees and Title insurance Razing cost of building Cost of land Increase 380,000 23,000 35,000 438,000 17,000 Increase in Buidling Fair value of Building received as donation Purchase of Small Storage Building Cash paid Fair value of automobile exchange Total Value of Small Storage building 15,250 3,750 19,000 Cost of Machinery Acquired Invoice cost Add: Installation cost Cost of Machinery 260,000 27,000 287,000 Automobiles Decrease in automobile is the cost of automobile exchanged for small storage building. i.e. $18,000 Expenditure paid for repaving of parking lots would be treated as expense. As the repair doesn't provide the future benefits.