Problem 9-2A (Part Level Submission) At December 31, 2014, Navaro Corporation re

Question

Problem 9-2A (Part Level Submission) At December 31, 2014, Navaro Corporation reported the following plant assets. Land Buildings Less: Accumulated depreciation- buildings Equipment Less: Accumulated depreciation- equipment Total plant assets $ 4,152,000 $27,880,000 16,504,200 11,375,800 55,360,000 6,920,000 48,440,000 $63,967,800 During 2015, the following selected cash transactions occurred Apr. 1 May 1 June 1 July 1 Dec. 31 Purchased land for $3,044,800 Sold equipment that cost $830,400 when purchased on January 1, 2008. The equipment was sold for $235,280 Sold land for $2,214,400. The land cost $1,384,000 Purchased equipment for $1,522,400 Retired equipment that cost $968,800 when purchased on December 31, 2005. No salvage value was received

Explanation / Answer

Depreciation Method or Rate is not given, hence i have assumed 20% decling method on Building and equipment

Depreciation @20% on equipment sold on 1 may Purchase cost $830,400.00 Depreciation for 7 year $656,252.50 Book Value on 31 dec.2014 $174,147.50 Dep. For 4 month $11,609.83

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