ACC305_week 5 discussions

ACC305_week 5 discussions - Week 5 discussions DISCUSSION 1...

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Week 5 discussions DISCUSSION 1 P10-3 Pell Corporation Schedule of Changes in Plant Assets For the Year Ended December 31, 2006 Balance 12/31/05 Increase Decrease Balance 12/31/06 Land $350,000 $438,000 $788,000 Land improvements 180,000 180,000 Building 1,500,000 1,500,000 Machinery and equipment 1,158,000 287,000 $58,000 1,387,000 Automobiles 150,000 19,000 18,000 151,000 Totals $3,338,000 $744,000 $76,000 $4,006,000 1. Calculations:
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Cost of land acquired 11/1/06: Pell stock exchanged (10,000 shares x $38) $380,000 Legal fees and title insurance 23,000 Razing existing building 35,000 $438,000 Cost of machinery and equipment purchased 1/2/06: Invoice cost $260,000 Installation cost 27,000 $287,000 Cost recorded for new automobile 12/31/06: Market value of trade-in $ 3,750 Cash paid 15,250 $ 19,000 2. Pell Corporation Gain or Loss from Plant Asset Disposals For the Year Ended December 31, 2006 Sale of machine on 3/31/06:
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Selling price $36,500 Less: Book value of machine ($58,000 - 24,650)
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ACC305_week 5 discussions - Week 5 discussions DISCUSSION 1...

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