N/A (6) (9) P11.10 (LO 1) Groupwork (Comprehensive Depreciation Computations) Kohlbeck Corporation, a manufacturer of steel products, began operations on October 1, 2019. The accounting department of Kohlbeck has started the fixed-asset and depreciation schedule presented as follows. Kohlbeck Corporation Fixed-Asset and Depreciation Schedule For Fiscal Years Ended September 30, 2020, and September 30, 2021 Depreciation Expense Year Ended Acquisition Depreciation September 30 Assets Date Cost Salvage Method Estimated Life in Years 2020 2021 Land A October 1, 2019 $ (1) N/A* N/A N/A N/A N/A Building A October 1, 2019 (2) $40,000 Straight-line (3) $13,600 (4) Land B October 2, 2019 (5) N/A N/A N/A N/A Building B Under $320,000 Straight-line - Construction to date Donated Equipment October 2, 2019 (7) 3,000 150% declining-balance (8) Machinery A October 2, 2019 (10) 6,000 Sum-of-the-years'-digits (11) (12) Machinery B October 1, 2020 (13) Straight-line (14) *N/A-Not applicable 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. 1. Depreciation is computed from the first of the month of acquisition to the first of the month of disposition. 2. Land A and Building A were acquired from a predecessor corporation. Kohlbeck paid $800,000 for the land and building together. At the time of acquisition, the land had an appraised value of $90,000, and the building had an appraised value of $810,000. 3. Land B was acquired on October 2, 2019, in exchange for 2,500 newly issued shares of Kohlbeck's common stock. At the date of acquisition, the stock had a par value of $5 per share and a fair value of $30 per share. During October 2019, Kohlbeck paid $16,000 to demolish an existing building on this land so it could construct a new building. 4. Construction of Building B on the newly acquired land began on October 1, 2020. By September 30, 2021, Kohlbeck had paid $320,000 of the estimated total construction costs of $450,000. It is estimated that the building will be completed and occupied by July 2022. 5. Certain equipment was donated to the corporation by a local university. An independent appraisal of the equipment when donated placed the fair value at $40,000 and the salvage value at $3,000. 6. Machinery A's total cost of $182,900 includes installation expense of $600 and normal repairs and maintenance of $14,900. Salvage value is estimated at $6,000. Machinery A was sold on February 1, 2021. 7. On October 1, 2020, Machinery B was acquired with a down payment of $5,740 and the remaining payments to be made in 11 annual installments of $6,000 each beginning October 1, 2020. The prevailing interest rate was 8%. The following data were abstracted from present value tables (rounded). Present Value of $1.00 at 8% 10 years .463 11 years .429 15 years Present Value of an Ordinary Annuity of $1.00 at 8% 10 years 6.710 11 years 7.139 15 years 315 8.559 Instructions For each numbered item on the schedule, supply the correct amount. (Round each answer to the nearest dollar.) N/A (6) (9) P11.10 (LO 1) Groupwork (Comprehensive Depreciation Computations) Kohlbeck Corporation, a manufacturer of steel products, began operations on October 1, 2019. The accounting department of Kohlbeck has started the fixed-asset and depreciation schedule presented as follows. Kohlbeck Corporation Fixed-Asset and Depreciation Schedule For Fiscal Years Ended September 30, 2020, and September 30, 2021 Depreciation Expense Year Ended Acquisition Depreciation September 30 Assets Date Cost Salvage Method Estimated Life in Years 2020 2021 Land A October 1, 2019 $ (1) N/A* N/A N/A N/A N/A Building A October 1, 2019 (2) $40,000 Straight-line (3) $13,600 (4) Land B October 2, 2019 (5) N/A N/A N/A N/A Building B Under $320,000 Straight-line - Construction to date Donated Equipment October 2, 2019 (7) 3,000 150% declining-balance (8) Machinery A October 2, 2019 (10) 6,000 Sum-of-the-years'-digits (11) (12) Machinery B October 1, 2020 (13) Straight-line (14) *N/A-Not applicable 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. 1. Depreciation is computed from the first of the month of acquisition to the first of the month of disposition. 2. Land A and Building A were acquired from a predecessor corporation. Kohlbeck paid $800,000 for the land and building together. At the time of acquisition, the land had an appraised value of $90,000, and the building had an appraised value of $810,000. 3. Land B was acquired on October 2, 2019, in exchange for 2,500 newly issued shares of Kohlbeck's common stock. At the date of acquisition, the stock had a par value of $5 per share and a fair value of $30 per share. During October 2019, Kohlbeck paid $16,000 to demolish an existing building on this land so it could construct a new building. 4. Construction of Building B on the newly acquired land began on October 1, 2020. By September 30, 2021, Kohlbeck had paid $320,000 of the estimated total construction costs of $450,000. It is estimated that the building will be completed and occupied by July 2022. 5. Certain equipment was donated to the corporation by a local university. An independent appraisal of the equipment when donated placed the fair value at $40,000 and the salvage value at $3,000. 6. Machinery A's total cost of $182,900 includes installation expense of $600 and normal repairs and maintenance of $14,900. Salvage value is estimated at $6,000. Machinery A was sold on February 1, 2021. 7. On October 1, 2020, Machinery B was acquired with a down payment of $5,740 and the remaining payments to be made in 11 annual installments of $6,000 each beginning October 1, 2020. The prevailing interest rate was 8%. The following data were abstracted from present value tables (rounded). Present Value of $1.00 at 8% 10 years .463 11 years .429 15 years Present Value of an Ordinary Annuity of $1.00 at 8% 10 years 6.710 11 years 7.139 15 years 315 8.559 Instructions For each numbered item on the schedule, supply the correct amount. (Round each answer to the nearest dollar.)