Student Name:

Class:
Problem 11-02

Requirement 1:
CORD COMPANY
Analysis of Changes in Plant Assets
For the Year Ending December 31, 2013

Balance Balance
12/31/2012 Increase Decrease 12/31/2013
Land (1)
Land improvements
Buildings (1)
Machinery and equipment (2)
Automobiles and trucks
Leasehold improvements

Explanation of Amounts:
(1) Plant facility acquired from King 1/6/2013 - allocation to Land and Building:
Shares
Market price
Fair value of shares

Allocation in proportion to appraised values at date of exchange:

Amount % of Total Allocation

Land
Building

(2) Machinery and equipment purchased 7/1/2013:

Invoice cost
Delivery cost
Installation cost
Total acquisition cost
 Student Name:
Class:
Problem 11-02

Requirement 2:
CORD COMPANY
Depreciation and Amortization Expense
For the Year Ended December 31, 2013

Land Improvements:
Cost
Straight-line rate
Annual depreciation
Depreciation on land improvements for 2013

Buildings:
Book value, 1/1/2013
Building acquired 1/6/2013
Total amount subject to depreciation
150% declining balance rate

Machinery and equipment:

Balance, 1/1/2013
Straight-line rate
Purchased on 7/1/2013
Depreciation for one-half year
Depreciation on machinery and equipment for 2013

Automobiles and trucks:

Book value, 1/1/2013
Deduct 1/1/2013 book value of truck sold on 9/30
Amount subject to depreciation
150% declining balance rate
Automobile purchased, 8/30/2013
Depreciation for 2013
Truck sold on 9/30/2013 - depreciation
Depreciation on automobiles and trucks

Leasehold improvements:
Book value, 1/1/2013
Amortization period, years
Amortization of leasehold improvements for 2013

Total depreciation and amortization expense for 2013

Given Data P11-02:

CORD COMPANY

Accumulated
Plant Depreciation &
Category Asset Amortization
Land $ 175,000 $ -
Buildings 1,500,000 328,900
Machinery and equipment 1,125,000 317,500
Automobiles and trucks 172,000 100,325
Leasehold improvements 216,000 108,000
Land improvements - -
Useful Life Depreciation
(years) Method
Buildings 25 150% Declining balance
Machinery and equipment 10 Straight-line
Automobiles and trucks (all acquired after 2009) 5 150% Declining balance
Leasehold improvements Straight-line
Land improvements Straight-line

Transactions and other information:

Common shares exchanged for land and building 25,000
Common share fair value $ 50
Assessed value of land $ 187,500
Assessed value of building $ 562,500
Parking lots, streets and sidewalk costs $ 192,000
Useful life of expenditures 12 years
Leasehold improvements useful life 8 years
Machinery and equipment purchase $ 325,000
Delivery costs $ 10,000
Installation costs $ 50,000
New auto purchase $ 12,500
Truck - cost $ 24,000
Truck - carrying amount $ 9,100
Truck sale $ 11,500
Truck depreciation for 9 months $ 2,650
Machine - cost $ 17,000
Machine - carrying amount $ 2,975
 Student Name:
Class:
Problem 11-03

PELL CORPORATION
Depreciation Expense
For the Year Ended December 31, 2013

Land Improvements
Cost
Straight-line rate

Building:
Book value 12/31/2012
150% declining balance rate

Machinery and Equipment:

Balance, 12/31/2012
Deduct machine sold
Straight-line rate
Purchased 1/2/2013
Depreciation
Machine sold 3/31/2013
Depreciation for three months
Total depreciation on machinery and equipment

Automobiles:
Book value on 12/31/2012
150% declining balance rate

Total depreciation expense for 2013

Given Data P11-03:

PELL CORPORATION

Plant asset and accumulated depreciation accounts Plant Accumulated

Balances at December 31, 2012: Assets Depreciation
Land $ 350,000 $-
Land improvements 180,000 45,000
Building 1,500,000 350,000
Machinery and equipment 1,158,000 405,000
Automobiles 150,000 112,000

Transactions during 2013:

Machinery and equipment purchase $ 260,000
Freight charge (included in purchase price above) $ 5,500
Installation costs $ 27,000
Machine purchase, 2009 $ 58,000
Machine selling price, 2013 $ 36,500
Depreciation through date of sale $ 24,650
Repaving cost $ 50,000
Common shares exchanged for land 10,000
Market price per share $ 38
Legal fees and title insurance $ 23,000
Cost to raze building $ 35,000
New automobile cost $ 15,250
Old automobile cost $ 18,000
Old automobile depreciation $ 13,500
Old automobile fair value $ 3,750

Useful Life Depreciation

(years) Method
Land improvements 15 Straight-line
Building 20 150% Declining balance
Machinery and equipment 10 Straight-line
Automobiles 3 150% Declining balance
 Student Name:
Class:
Problem 11-06

Requirement 1:

Building:
Cost at 3/31/13
Estimated life
Straight-line rate

Machinery:
Cost at 3/31/13
Estimated life
Residual Value
Straight-line rate

Equipment:
Cost at 3/31/13
Estimated life
Residual Value
Sum-of-the-years'-digits rate
Sum-of-the-digits

Requirement 2:
General Journal

Account Debit Credit

1. 6/29/2012

Machinery sold 6/29/2014:

Cost at 3/31/13
Estimated life
Residual Value
Straight-line rate

2. 6/29/2012

2013 Depreciation:
Cost at 3/31/13
Estimated life
 Residual Value
Straight-line rate

2014 Depreciation:
Cost at 3/31/13
Estimated life
Residual Value
Straight-line rate
Requirement 3:

Building:
Cost at 3/31/11
Estimated life
Straight-line rate

Machinery:
Cost at 3/31/11
Estimated life
Residual Value
Straight-line rate

Equipment:
Cost at 3/31/11
Estimated life
Residual Value
2013 Sum-of-the-years'-digits rate
2012 Sum-of-the-years'-digits rate
Sum-of-the-digits
Given Data P11-06:

HERZOG COMPANY

Estimated Estimated Useful

Asset Cost Residual Value Life in Years
Land $ 100,000 N/A N/A
Building 500,000 none 25
Machinery 240,000 10% of cost 8
Equipment 160,000 $13,000 6
Total $ 1,000,000

Additional information:
Machinery sold 6/29/14 $ 80,000
Original cost of machinery on 3/31/13 $ 100,000
Depreciation method for buildings and Straight Line
machinery
Depreciation method for equipment Sum-of-the-years' digits
Partial-year depreciation based on months in service
 Student Name:
Class:
Problem 11-07

Requirement 1:
MARION COMPANY
Depletion and Depreciation

Cost of mineral mine:

Purchase price
Development costs

Depletion:
Land resale value
Estimated ore extracted (tons)
Depletion per ton

2013
Ore extracted (tons)
Depletion

2014
Ore extracted (tons)
Revised ore extraction (tons)
Revised depletion rate
Depletion

Depreciation:
Structures:
Building cost
Depreciation per ton

2013 depreciation

Revised depreciation rate

2014 depreciation

Equipment:
Equipment cost
Estimated equipment sale
Depreciation per ton

2013 depreciation

Revised depreciation rate

2014 depreciation
 Student Name:
Class:
Problem 11-07

Requirement 2:
MARION COMPANY
Book Value

Mineral mine:
Cost
Less accumulated depletion:
2013 depletion
2014 depletion
Book value, 12/31/2014

Structures:
Cost
Less accumulated depreciation:
2013 depreciation
2014 depreciation
Book value, 12/31/2014

Equipment:
Cost
Less accumulated depreciation:
2013 depreciation
2014 depreciation
Book value, 12/31/2014
Given Data P11-07:

MARION COMPANY

Land purchase $ 1,600,000

Additional mine development costs $ 600,000
Estimated tons extracted 400,000
Land resale value $ 100,000
Building costs $ 150,000
Useful life of buildings 10 years
New equipments cost $ 80,000
Auction price of equipment $ 4,000
2013 ore extracted and sold 50,000 tons
Revised estimated tons extracted 487,500
2014 ore extracted 80,000 tons
Ore sold from 2012 extraction 60,000 tons