Reference no: EM13604330

The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2010

Land - Plant Asset 350000 - Accumulated depreciation $ ---
Land improvments - Plant Assets 180000 Accumulated depreciiation 45000
Building - Plant Assets 1500000 Accumulated Depreciation 350000
Machinery and equiptment - Plant Assets 1158000 -Accumulated Depreciation - 405000
Automobiles -Plant Assets 150000 - Accumulated depreciation -112000

Transactions during 2011 were as follows:

a.On January 2, 2011, machinery and 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, 2011, a machine purchased for $58,000 in 2007 was sold for $36,500. Depreciation recorded through the date of sale totaled $24,650.

c.On May 1, 2011, 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.

d.On November 1, 2011, 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 2012.

e.On December 31, 2011, Pell purchased a new automobile for $15,250 cash and trade-in of an old automobile purchased for $18,000 in 2007. Depreciation on the old automobile recorded through December 31, 2011, 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 2011, with detailed supporting computations.