Forever
(Dispositions, Including Condemnation, Demolition, and Trade-In) Presented below is a schedule of property dispositions for Hollerith Co.
Schedule Of Property Dispositions
Accumulated
Cash Proceeds
Fair Value
Nature of
Cost
Depreciation
Depreciation
Land
40,000
31,000
31,000
Condemnation
Building
15,000
3,600
Demolition
Warehouse
70,000
10,000
74,000
74,000
Destruction by fire
Machine
8,000
2,600
900
7,200
Trade in
Furniture
10,000
7,650
3,100
Contribution
Automobiles
9,000
3,400
2,960
2,960
Sales
The following additional information is available.
Land: On February 15, a condemnation award was received as consideration for unimproved land held primarily as an investment, and on March 31, another parcel of unimproved land to be held as an investment was purchased at a cost of P35,000.
Building: On April 2, land and building were purchased at a total cost of P75,000, of which 20% was allocated to the building on the corporate books. The real estate was acquired with the intention of demolishing the building, and this was accomplished during the month of November. Cash proceeds received in November represent the net proceeds from demolition of the building.
Warehouse: On June 30, the warehouse was destroyed by fire. The warehouse was purchased January 2, 2011, and had depreciated $P16,000. On December 27, the insurance proceeds and other funds were used to purchase a replacement warehouse at a cost of P90,000.
Machine: On December 26, the machine was exchanged for another machine having a fair value of P6,300 and cash of P900 was received. (The exchange lacks commercial substance.)
Furniture: On August 15, furniture was contributed to a qualified charitable organization. No other contributions were made or pledged during the year.
Automobile: On November 3, the automobile was sold to Jared Winger, a stockholder. Instructions Indicate how these items would be reported on the income statement of Hollerith Co. (AICPA adapted)
(Correction of Improper Cost
Schedule Of Property Dispositions
Accumulated
Cash Proceeds
Fair Value
Nature of
Cost
Depreciation
Depreciation
Land
40,000
31,000
31,000
Condemnation
Building
15,000
3,600
Demolition
Warehouse
70,000
10,000
74,000
74,000
Destruction by fire
Machine
8,000
2,600
900
7,200
Trade in
Furniture
10,000
7,650
3,100
Contribution
Automobiles
9,000
3,400
2,960
2,960
Sales
The following additional information is available.
Land: On February 15, a condemnation award was received as consideration for unimproved land held primarily as an investment, and on March 31, another parcel of unimproved land to be held as an investment was purchased at a cost of P35,000.
Building: On April 2, land and building were purchased at a total cost of P75,000, of which 20% was allocated to the building on the corporate books. The real estate was acquired with the intention of demolishing the building, and this was accomplished during the month of November. Cash proceeds received in November represent the net proceeds from demolition of the building.
Warehouse: On June 30, the warehouse was destroyed by fire. The warehouse was purchased January 2, 2011, and had depreciated $P16,000. On December 27, the insurance proceeds and other funds were used to purchase a replacement warehouse at a cost of P90,000.
Machine: On December 26, the machine was exchanged for another machine having a fair value of P6,300 and cash of P900 was received. (The exchange lacks commercial substance.)
Furniture: On August 15, furniture was contributed to a qualified charitable organization. No other contributions were made or pledged during the year.
Automobile: On November 3, the automobile was sold to Jared Winger, a stockholder. Instructions Indicate how these items would be reported on the income statement of Hollerith Co. (AICPA adapted)
(Correction of Improper Cost