price of $ 37 per share on a national stock exchange. The plant facility was carried on Mendota % u2019s
books at $ 110,000 for land and $ 320,000 for the building at the exchange date. Current appraised
values for the land and building, respectively, are $ 230,000 and $ 690,000.
3. Items of machinery and equipment were purchased at a total cost of $ 400,000. Additional costs were
incurred as follows. Freight and unloading $ 13,000 Sales taxes 20,000 Installation 26,000
4. Expenditures totaling $ 95,000 were made for new parking lots, streets, and sidewalks at the corporation % u2019s various plant locations. These expenditures had an estimated useful life of 15 years.
5. A machine costing $ 80,000 on January 1, 2004, was scrapped on June 30, 2014. Double-declining balance depreciation has been recorded on the basis of a 10-year life.
6. A machine was sold for $ 20,000 on July 1, 2014. Original cost of the machine was $ 44,000 on January 1, 2009, and it was depreciated on the straight-line basis over an estimated useful life of 7 years and a salvage value of $ 2,000.
Instructions
( a) Prepare a detailed analysis of the changes in each of the following balance sheet accounts for 2014.