Reference no: EM132471561
Selected accounts included in the property. plant. and equipment section of Novak Corporation's balance sheet at December 31.2019. had the following balances.
I and $342,000
Land improvements 159,600
Buildings 1.254.000
Equipment 1,094,400
During 2020. the following transactions occurred.
Point 1. A tract of land was acquired for $171,000 as a potential future building site.
Point 2. A plant facility consisting of land and building was acquired from Mendota Company in exchange for 22.800 shares of Novak's common stock On the acquisition date. Novak's stock had a closing market price of $37 per share on a national stock exchange. The plant facility was carried on Mendota's books at $125,400 for land and $364,800 for the building at the exchange date. Current appraised values for the land and building. respectively. are $262,200 and 5786.600.
Point 3. Items of machinery and equipment were purchased at a total cost of 5456.000. Additional costs were incurred as follows.
Freight and unloading $14,820
Sales taxes 22.800
Installation 29.640
Point 4. Expenditures totaling $108.300 were made for new parking lots, streets, and sidewalks at the corporation's various plant locations. These expenditures had an estimated useful life of 15 years.
Point 5. A machine costing $91,200 on January 1, 2012, was scrapped on June 30, 2020. Double-declining-balance depreciation has been recorded on the basis of a 10-year life.
Point 6. A machine was sold for $22.800 on July 1. 2020. Original cost of the machine was $50.160 on January 1. 2017. and it was depreciated on the straight-line basis over an estimated useful life of 7 years and a salvage value of $2,280.
Question 1: Calculate the balance at December 31, 2020 in each of the following balance sheet accounts. (Hint: Disregard the related accumulated depreciation accounts.)
Question 2: Calculate land, Land improvements, buildings, and Equipment