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I am requesting assistance with this problem. I have submitted this problem numerous times and no one has been able to answer it. Can someone
I am requesting assistance with this problem. I have submitted this problem numerous times and no one has been able to answer it. Can someone please help me and give an explanation for the correct answer as soon as possible? Thanks
The Thompson Corporation, a manufacturer of steel products, began operations on October 1, 2019. The accounting department of Thompson has started the fixed-asset and depreciation schedule presented below. You have been asked to assist in completing this schedule. In addition to ascertaining that the data already on the schedule are correct, you have obtained the following information from the company's records and personnel: (FV of $1. PV of $1, FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 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 $852,500 for the land and building together. At the time of acquisition, the land had a fair value of $94,000 and the building had a fair value of $846,000. c. Land B was acquired on October 2, 2019, in exchange for 3,400 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 $29 per share. During October 2019, Thompson paid $10,800 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 $250,000 of the estimated total construction costs of $340,000. 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 $17,600 and the residual value at $2,400. f. Equipment A's total cost of $111,000 includes installation charges of $590 and normal repairs and maintenance of $16,000. Residual value is estimated at $4,800. Equipment A was sold on February 1, 2021. g. On October 1, 2020, Equipment B was acquired with a down payment of $4,400 and the remaining payments to be made in 10 annual installments of $4,400 each beginning October 1, 2021. The prevailing interest rate was 9%. Required: Supply the correct amount for each answer box on the schedule. (Round your intermediate calculations and final answers to the nearest whole dollar.) Answer is complete but not entirely correct THOMPSON CORPORATION Fixed Asset and Depreciation Schedule For Fiscal Years Ended September 30, 2020, and September 30, 2021 Depreciation for Year Ended 9/30 Estimated Life in Years Acquisition Date Depreciation Method Assets Cost Residual 2021 2020 Land A 85,250 10/1/2019 not applicable N/A N/A N/A N/A Building A 767,250 10/1/2019 9 $ Straight-line 61,650 14,400 Land B 98,000 10/2/2019 N/A not applicable N/A N/A N/A Building B Donated Equipment 0 250,000 to date Under construction Straight-line 30 10/2/2019 17,600 200% Declining balance 2,400 10 2,640 2,244 Equipment A Equipment B Sum-of-the years'-digits 10/2/2019 95,000 16,400 4,800 10 4,920 3,765 10/1/2020 56,475 Straight-line 15
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