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Problem $10-3($Static$)$ Acquisition costs $[$LO$10-1,10-4,10-6]$

The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December $31,2023$:

Plant Asset Accumulated Depreciation

Land $ $350,000$ $ $$

Land improvements $180,00045,000$

Building $1,500,000350,000$

Equipment $1,158,000405,000$

Automobiles $150,000112,000$

Transactions during $2024$ were as follows:

On January $2,2024,$ equipment was purchased at a total invoice cost of $$260,000,$ which included a $$5,500$ charge for freight. Installation costs of $$27,000$ were incurred in addition to the invoice cost.

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 $$25,000.$ The fair value of the building on the day of the donation was $$17,000.$

On May $1,2024,$ expenditures of $$50,000$ were made to repave parking lots at Pell$$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.

On November $1,2024,$ Pell acquired a tract of land with an existing building in exchange for $10,000$ shares of Pell's common stock that had a market price of $$38$ per share. Pell paid legal fees and title insurance totaling $$23,000.$ Shortly after acquisition, the building was razed at a cost of $$35,000$ in anticipation of new building construction in $2025.$

On December $31,2024,$ Pell purchased a small storage building by giving $$15,250$ cash and an old automobile purchased for $$18,000$ in $2017.$ Depreciation on the old automobile recorded through December $31,2024,$ totaled $$13,500.$ The fair value of the old automobile was $$3,750.$

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