On January 1, 2020, Covid 19 Company reported the following account balances relating to property, plant and equipment: Land 2,000,000.00 Building 15,000,000.00 Accumulated Depreciation 3,750,000.00 Machinery 3,000,000.00 Accumulated Depreciation 1,500,000.00 Assets have been carried at cost since acquisition. All assets were acquired on January 1, 2010. The straight line method is used.

On January 1, 2020, Covid 19 Company reported the following account balances relating to property, plant and equipment: Land 2,000,000.00 Building 15,000,000.00 Accumulated Depreciation 3,750,000.00 Machinery 3,000,000.00 Accumulated Depreciation 1,500,000.00 Assets have been carried at cost since acquisition. All assets were acquired on January 1, 2010. The straight line method is used.

Name: On January 1, 2020, Covid 19 Company reported the following account b
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: On January 1, 2020, Covid 19 Company reported the following account balances relating to property, plant and equipment:Land 2,000,000.00Building 15,000,000.00Accumulated Depreciation 3,750,000.00Machinery 3,000,000.00Accumulated Depreciation 1,500,0

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity

Section: Chapter Questions

Problem 6RE: Oz Corporation has the following assets at year-end: Patents (net), 26,000; Land, 50,000; Buildings,...

See similar textbooks

Similar questions

Dinnell Company owns the following assets: In the year of acquisition and retirement of an asset, Dinnell records depreciation expense for one-half year. During 2020, Asset A was sold for 7,000. Required: Prepare the journal entries to record depreciation on each asset for 2017 through 2020 and the sale of Asset A. Round all answers to the nearest dollar.
On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was estimated at 2,000. The equipment will be depreciated over 10 years using the double-declining balance method. Counting the year of acquisition as one-half year, Mundo should record 2019 depredation expense of: a. 7,680 b. 9,000 c. 9,600 d. 10,000
On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an estimated life of 20 years and an estimated residual value of 20,000. The company has been depreciating the building using straight-line depreciation. At the beginning of 2020, the following independent situations occur: a. The company estimates that the building has a remaining life of 10 years (for a total of 16 years). b. The company changes to the sum-of-the-years-digits method. c. The company discovers that it had ignored the estimated residual value in the computation of the annual depreciation each year. Required: For each of the independent situations, prepare all journal entries related to the building for 2020. Ignore income taxes.
Oz Corporation has the following assets at year-end: Patents (net), 26,000; Land, 50,000; Buildings, 175,000; Accumulated Depreciation: Buildings, 57,500; Investment in Held-to-Maturity Bonds, 12,000; Equipment, 95,000; and Accumulated Depreciation: Equipment, 25,000. Prepare the property, plant, and equipment section of Ozs year-end balance sheet.
The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2020: Accumulated Depreciation 0 Land Land improvements Building Equipment Automobiles Plant Asset $ 395,000 193,500 1,590,000 1,248,000 159,000 Transactions during 2021 were as follows: $ 54,000 395,000 450,000 116,500 a. On January 2, 2021, equipment were purchased at a total invoice cost of $305,000, which included a $6,400 charge for freight. Installation costs of $36,000 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 $34,000. The fair value of the building on the day of the donation was $21,400. c. On May 1, 2021, expenditures of $59,000 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…
On January 1, 2021, Peaceful Company reported the following account balances relating to property, plant and equipment: Land, P 4,000,000; Building, P 30,000,000, with Accumulated Depreciation of P 7,500,000. Assets have been carried at cost since acquisition. All assets were acquired on January 1, 2021. The straight-line method is used. On January 1, 2021, the entity decided to revalue the property, plant and equipment. On such date, competent appraisers submitted the following (at replacement cost): Land, P10,000,000; Building, P 50,000,000. What is the revaluation surplus on January 1, 2021? P 15,000,000P 6,000,000P 30,000,000P 21,000,000
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 $ 380,000 195,000 1,650,000 1,164,000 165,000 Transactions during 2021 were as follows: a. On January 2, 2021, equipment were purchased at a total invoice cost of $275,000, which included a $5,800 charge for freight. Installation costs of $30,000 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 $22,000. The fair value of the building on the day of the donation was $16.000. c. On May 1, 2021, expenditures of $53,000 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…
The following data relate to the acquisition of an equipment owned by BUSS Corporation. Acquisition Date- October 1,2019 Cost$125,000 Estimated residual value - $5,000 Estimated useful life - 10 years Estimated service hours - 10,000 Estimated output in units- 24,000 Under the uniform charge method of depreciation, what is the asset's carrying value as of December 31,2022?
he plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2020: Plant Asset Accumulated Depreciation Land $510,000 - Land Improvements 260,000 61,000 Building 2,300,000 366,000 Equipment 1,190,000 421,000 Automobiles 230,000 128,000 Transactions during 2021 were as follows: On January 2, 2021, equipment were purchased at a total invoice cost of $340,000, which included a $7,100 charge for freight. Installation costs of $43,000 were incurred. 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 $35,000. The fair value of the building on the day of the donation was $22,500. On May 1, 2021, expenditures of $66,000 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…
The T-accounts for Equipment and the related Accumulated Depreciation—Equipment for Vaughn Manufacturing at the end of 2022 are shown here. Equipment Beg. bal. 100,000 Disposals 27,500 Acquisitions 52,000 End. bal. 124,500 Accum. Depr.—Equipment Disposals 6,375 Beg. bal. 55,625 Depr. exp. 15,000 End. bal. 64,250 In addition, Vaughn Manufacturing’s income statement reported a loss on the disposal of plant assets of $4,375. What amount was reported on the statement of cash flows as “cash flow from sale of equipment”? (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Cash flow from sale of equipment $enter cash flow from sale of equipment in dollars
The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2023: Plant Asset Accumulated Depreciation $ 480,000 245,000 2,150,000 1,184,000 215,000 Land Land improvements Building Equipment Automobiles Transactions during 2024 were as follows: a. On January 2, 2024, equipment was purchased at a total invoice cost of $325,000, which included a $6,800 charge for freight Installation costs of $40,000 were incurred in addition to the invoice cost. b. On March 31, 2024, a small storage building was donated to the company. The person donating the building originally purchased it three years ago for $32,000. The fair value of the building on the day of the donation was $21,000. c. On May 1, 2024, expenditures of $63,000 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…
At December 31, 2020, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances as follows: Category Plant Asset Accumulated Depreciationand Amortization Land $ 178,000 $ — Land improvements — — Buildings 1,650,000 331,900 Equipment 1,275,000 320,500 Automobiles and trucks 175,000 103,325 Leasehold improvements 222,000 111,000 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: On January 6, 2021, a plant facility consisting of land and building was acquired from King Corp. in exchange for 28,000 shares of Cord's common stock. On…