On january 2 2013 machinery and equipment were purchased at

Reference no: EM13578147

The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2012:

Plant Asset Accumulated
Depreciation
Land $ 360,000 $ 0
Land improvements 183,000 47,000
Building 1,520,000 360,000
Machinery and equipment 1,178,000 415,000
Automobiles 152,000 113,000

Transactions during 2013 were as follows:
a.On January 2, 2013, machinery and equipment were purchased at a total invoice cost of $270,000, which included a $5,700 charge for freight. Installation costs of $29,000 were incurred.
b.On March 31, 2013, a machine purchased for $60,000 in 2009 was sold for $37,500. Depreciation recorded through the date of sale totaled $25,500.
c.On May 1, 2013, expenditures of $52,000 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, 2013, 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 $40 per share. Pell paid legal fees and title insurance totaling $24,000. Shortly after acquisition, the building was razed at a cost of $37,000 in anticipation of new building construction in 2014.
e.On December 31, 2013, Pell purchased a new automobile for $15,750 cash and trade-in of an old automobile purchased for $19,000 in 2009. Depreciation on the old automobile recorded through December 31, 2013, totaled $14,250. The fair value of the old automobile was $3,850.

Reference no: EM13578147

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