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At December 31, 2017, Cord Company’s plant asset and accumulated depreciation and amortization accounts had balances as follows:
CategoryPlant Asset Accumulated Depreciation
and AmortizationLand$182,000 $— Buildings 1,850,000 335,900 Machinery and equipment 1,475,000 324,500 Automobiles and trucks 179,000 107,325 Leasehold improvements 230,000 115,000 Land improvements — —
Depreciation methods and useful lives:
Buildings—150% declining balance; 25 years.
Machinery and equipment—Straight line; 10 years.
Automobiles and trucks—150% declining balance; 5 years, all acquired after 2014.
Leasehold improvements—Straight line.
Land improvements—Straight line.
Depreciation is computed to the nearest month and residual values are immaterial. Transactions during 2018 and other information:
Required:
1. Prepare a schedule analyzing the changes in each of the plant asset accounts during 2018. Do not analyze changes in accumulated depreciation and amortization.
2. For each asset category, prepare a schedule showing depreciation or amortization expense for the year ended December 31, 2018.
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