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1. The property, plant, and equipment accounts o Robertson Inc. had the following balances at December 31,2014.
Account Name Amount
Land $300,000
Land improvements 140,000
Buildings 1,100,000
Equipment 960,000

Transactions that occurred during 201 include the following:
i. A tract of land was acquired for$150,000 as a potential building site.`
ii. A plant facility consisting of land and building was acquired from Pellium Company in exchange for 20,000 shares of Robertson’s commons stick. On the acquisition date, Robertson’s stock had a closing market price of $37 per share on a national stock exchange. The plant facility was carried on Pellium’s books at $110,000 for land and $320,000 for the building at the exchange date. Current appraised value for the land is $230,000 and building is $690,000.
iii. Expenditures totaling $95,000 were made for the new parking lots, streets, and sidewalks at the corporation’s various plant locations. These expenditures had an estimated useful life of 15 years.
iv. 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
v. A machine costing $80,000 on January 1, 2007, was scrapped on June 30, 2015. Double-declining-balance depreciation has been recorded on the basis of a 10 year life.
vi. A machine was sold for $20,000 on July 1, 2015. Original cost o the machine was $44,000 on January 1, 2012, and it was depreciated on the straight-line basis over an estimated useful life of 7 years and a salvage value of $2,000.
1. Prepare a schedule analyzing the changes in each of the property, plant, and equipment accounts for 2014.
2. Prepare a schedule showing the gain or loss from each property, plant,and equipment’s disposal that would be recognized in the company’s income statement for the year ended December 31,2014.

2. On December 1, 2014, Phifer Landscaping Corp. began construction of a new plant. On that date, the company purchased a parcel of land for $139,000 in cash. In addition, it paid $2,000 in surveying costs and $4,000 for a title insurance policy. An old dwelling on the premises was demolished at a cost of $3,000, with $1,000 being received from the sale of materials.
Architectural plans were also formalized on December 1, 2014, when the architect was paid $30,000.
In addition, the necessary building permits that cost $3,000 were obtained from the city and paid on December 1. The excavation work began during the first week in December with payments made to the contractor as follows.
Date Payment Amount
March 1, 2015 $240,000
May 1, 2015 $330,000
July 1, 2015 $60,000
The building was completed on July 1, 2015.
To finance construction of this plant, Phifer borrowed $600,000 from the bank on December 1, 2014. The 600,000 was a 10 year loan bearing interest at 8%. Phifer had no other borrowings.
1. What is the balance of land in 2013 and 2014?
2. What is the balance of building in 2013 and 2014?
3. What is the interest expense amount in 2013 and 2014?
Calculate the amount of interest Phifer should capitalize in 2013 and 2014. (hint use the specific interest method).

3. This is a comtinuation of problem 1 (Robertson)
For each property, plant, and equipment account prepare a schedule showing depreciation expense for each year ended December 31, 2014. Use the following depreciation methods and useful lives:
Land improvements – straight line 15 yrs
Building 150% declining balance; 20 yrs
Equipmemt- straight line; 10 yrs
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