Question

Need help with part with Blue Arrow.

At December 31, 2020, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances as follows: Plant Asset $ 171,000 Accumulated Depreciation and Amortization $ Category Land Land improvements Buildings Equipment Automobiles and trucks Leasehold improvements 1,300,000 925,000 168,000 208,000 324,900 313,500 96,325 104,000 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 computed to the nearest month and residual values are immaterial. Transactions during 2021 and other information: a. On January 6, 2021, a plant facility consisting of land and building was acquired from King Corp. in exchange for 21,000 shares of Cord's common stock. On this date, Cord's stock had a fair value of $40 a share. Current assessed values of land and building for property tax purposes are $142,000 and $568,000, respectively. b. On March 25, 2021, new parking lots, streets, and sidewalks at the acquired plant facility were completed at a total cost of $168,000. These expenditures had an estimated useful life of 12 years. c. The leasehold improvements were completed on December 31, 2017, and had an estimated useful life of eight years. The related lease, which would terminate on December 31, 2023, was renewable for an additional four-year term. On April 30, 2021, Cord exercised the renewal option. d. On July 1, 2021, equipment was purchased at a total invoice cost of $321,000. Additional costs of $12,000 for delivery and $46,000 for installation were incurred. e. On September 30, 2021, Cord purchased a new automobile for $12,100. f. On September 30, 2021, a truck with a cost of $23,600 and a book value of $8,400 on date of sale was sold for $11,100. Depreciation for the nine months ended September 30, 2021, was $1,890. g. On December 20, 2021, equipment with a cost of $15,000 and a book value of $2,875 at date of disposition was scrapped without cash recovery.

Answer 1

Automobiles and trucks:

Book Value, 1/1/21 ($168000-$96325)	71675
less: Book value of truck sold (11100+1890)	12990
Total depreciable amount	84665
200% depreciation=1/5=20%*2	40%	33866
Automobile purchased	12100
Depreciation for 3 month(40%*3/12)	10%	1210
Depreciation on Truck sold		1890
Total depreciation on automobile and truck		28204

"Please rate if it helps you or let me know if anything else"