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Student Name:
Class:
Balance Balance
12/31/2015 Increase Decrease 12/31/2016
Land (1) 175,000$ 312,500$ -$ 487,500$
Land improvements - 192,000 - 192,000
(1) Plant facility acquired from King 1/6/2016 - allocation to Land and Building:
Shares 25,000
Allocation in proportion to appraised values at date of exchange:
Amount % of Total Allocation
Land 187,500$ 25% 312,500$ «- Correct!
Instructor
Problem 11-02
Explanation of Amounts:
For the Year Ending December 31, 2016
Analysis of Changes in Plant Assets
CORD COMPANY
Requirement 1:
McGraw-Hill/Irwin
Student Name:
Class:
Instructor
Problem 11-02
McGraw-Hill/Irwin
Correct!
1,171,100$
Correct!
1,125,000$
10% 112,500
Correct!
108,000$
Book value, 1/1/2016
Leasehold improvements:
Book value, 1/1/2016
Machinery and equipment:
Balance, 1/1/2016
Straight-line rate
For the Year Ended December 31, 2016
Depreciation and Amortization Expense
CORD COMPANY
Requirement 2:
Land Improvements:
Buildings:
Accumulated
Plant Depreciation &
Asset Amortization
175,000$ $ -
1,500,000 328,900
Useful Life Depreciation
(years) Method
25 150% Declining balance
25,000
50$
CORD COMPANY
Given Data P11-02:
Transactions and other information:
Category
Land
Buildings
Buildings
Common shares exchanged for land and building
Common share fair value
Student Name:
Class:
180,000$
6.67% 12,000$
Correct!
Correct!
1,158,000$
(58,000) 1,100,000$
Deduct machine sold
Balance, 12/31/2015
Machinery and Equipment:
Building:
Land Improvements
Cost
Straight-line rate
Instructor
For the Year Ended December 31, 2016
Depreciation Expense
PELL CORPORATION
Problem 11-03
McGraw-Hill/Irwin
Plant Accumulated
Assets Depreciation
350,000$ $ -
180,000 45,000
260,000$
5,500$
Useful Life Depreciation
(years) Method
15 Straight-line
Land improvements
Balances at December 31, 2015:
Given Data P11-03:
PELL CORPORATION
Transactions during 2016:
Plant asset and accumulated depreciation accounts
Land
Land improvements
Machinery and equipment purchase
Freight charge (included in purchase price above)
Student Name:
Class:
$500,000
240,000$
8
Account Debit Credit
5,625
5,625
80,000
2. 6/29/2017
Cash
Cost at 3/31/16
General Journal
Accumulated depreciation-machinery
Depreciation Expense
1. 6/29/2017
Machinery sold 6/29/2017:
Instructor
Requirement 2:
Problem 11-06
McGraw-Hill/Irwin
Requirement 1:
Building:
Machinery:
Estimated life
Cost at 3/31/16
Correct!
$100,000
Cost at 3/31/16
2017 Depreciation:
$140,000
8
Cost at 3/31/17
Machinery:
Estimated life
Requirement 3:
Building:
Estimated Estimated Useful
Asset Cost Residual Value Life in Years
100,000$ N/A N/A
500,000 none 25
HERZOG COMPANY
Given Data P11-06:
Building
Land
Student Name:
Class:
1,600,000$
100,000$
400,000
80,000
487,500
80,000$
Instructor
Depletion and Depreciation
MARION COMPANY
Problem 11-07
McGraw-Hill/Irwin
Requirement 1:
Cost of mineral mine:
Depletion:
Land resale value
Estimated ore extracted (tons)
Purchase price
2017
Ore extracted (tons)
Revised ore extraction (tons)
Equipment:
Equipment cost
Student Name:
Class:
Instructor
Problem 11-07
McGraw-Hill/Irwin
2,200,000$
18,750$
Requirement 2:
Mineral mine:
Book Value
MARION COMPANY
Cost
Less accumulated depletion:
Less accumulated depreciation:
2016 depreciation
1,600,000$
80,000$
4,000$
New equipments cost
Auction price of equipment
Given Data P11-07:
MARION COMPANY
Land purchase
