50.1K

Verified Solution

Link Copied!

Accumulated Depreciation and Amortization Plant Asset Category Land Buildings Machinery and equipment Automobiles and trucks Leasehold improvements Land improvements $ 174,000 1,450,000 1,075,000 171,000 214,000 327,900 316,500 99,325 107,000 Depreciation methods and useful lives Buildings-150% declining balance, 25 years Machinery and equipment-Straight line; 10 years Automobiles and trucks-150% declining balance: 5 years, all acquired after 2014 Leasehold improvements-Straght line Land improvements-Straight line Depreciation is computed to the nearest month and residual values are immaterial. Transactions during 2018 and other information a. On January 6, 2018, a plant facility consisting of land and building was acquired from King Corp. in exchange for 24,000 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 $148,000 and $592,000, respectively These expenditures had an estimated useful life of 12 years lease, which would terminate on December 31, 2020, was renewable for an additional four-year term. On April 30, 2018, Cord b. On March 25, 2018, new parking lots, streets, and sidewalks at the acquired plant facility were completed at a total cost of $186,000 C. The leasehold improvements were completed on December 31, 2014, and had an estimated useful life of eight years. The related exercised the renewal option d. On July 1, 2018, machinery and equipment were purchased at a total invoice cost of $324,000. Additional costs of $12,000 for delivery and $49,000 for installation were incurred e. On August 30, 2018, Cord purchased a new automobile for $12,400 f. On September 30, 2018, a truck with a cost of $23,900 and a book value of $9,000 on date of sale was sold for $11,400 Depreciation for the nine months ended September 30, 2018, was $2,025 g. On December 20, 2018, a machine with a cost of $16,500 and a book value of $2,950 at date of disposition was scrapped without cash recovery

Answer & Explanation Solved by verified expert

See Answer