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a. Depreciation is computed from the first of the month of acquisition to the first of the month of disposition. b. Land A and Building

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a. Depreciation is computed from the first of the month of acquisition to the first of the month of disposition. b. Land A and Building A were acquired from a predecessor corporation. Thompson paid $902,500 for the land and building together At the time of acquisition, the land had a fair value of $79,200 and the building had a fair value of $910,800. c. Land B was acquired on October 2, 2019, in exchange for 3,900 newly issued shares of Thompson's common stock. At the date of acquisition, the stock had a par value of $5 per share and a fair value of $34 per share. During October 2019, Thompson poid $11,300 to demolish an existing building on this land so it could construct a new building. d. Construction of Building B on the newly acquired land began on October 1, 2020. By September 30, 2021, Thompson had paid $300,000 of the estimated total construction costs of $390,000. Estimated completion and occupancy are July 2022. e. Certain equipment was donated to the corporation by the city. An independent appraisal of the equipment when donated placed the fair value at $19,600 and the residual value at $2,900. f. Equipment A's total cost of $108,000 includes installation charges of $640 and normal repairs and maintenance of $12,800. Residual value is estimated at $6,100. Equipment A was sold on February 1, 2021. g. On October 1, 2020, Equipment B was acquired with a down payment of $4,900 and the remaining payments to be made in 10 annual installments of $4,900 each beginning October 1, 2021. The prevailing interest rate was 8%. Required: Supply the correct amount for each answer box on the schedule. (Round your intermediate calculations and final answers to the nearest whole dollar.) THOMPSON CORPORATION Fixed Asset and Depreciation Schedule For Fiscal Years Ended September 30, 2020, and September 30, 2021 Acquisition Date Assets Depreciation for Year Ended 9/30 Cost Depreciation Method Residual Estimated Life in Years 2021 2020 NIA N/A N/A $ NIA 85,300 NIA $ 14,900 NIA N/A N/A Land A Building A Land B Building B Donated Equipment Equipment A Equipment B 10/1/2019 10/1/2019 10/2/2019 Under construction 10/2/2019 10/2/2019 10/1/2020 300,000 to date not applicable Straight-line not applicable Straight-line 200% Declining balance Sum of the years'-digits Straight-line 30 10 2,900 6,100 15

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