Novak Corporation, a manufacturer of steel products, began operations on October 1, 2024. The accounting department of Novak has started the fixed-asset and depreciation schedule presented as follows. 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. 2. Depreciation is computed from the first of the month of acquisition to the first of the month of disposition. Land A and Building A were acquired from a predecessor corporation. Novak paid $856,000 for the land and building together. At the time of acquisition, the land had an appraised value of $90,500, and the building had an appraised value of $814,500. 3. Land B was acquired on October 2, 2024, in exchange for 2,500 newly issued shares of Novak'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 2024, Novak paid $14,800 to demolish an existing building on this land so it could construct a new building. 4. 5. 6. 7. Construction of Building B on the newly acquired land began on October 1, 2025. By September 30, 2026, Novak had paid $292,400 of the estimated total construction costs of $431,500. It is estimated that the building will be completed and occupied by July 2027. Certain equipment was donated to the corporation by a local university. An independent appraisal of the equipment when donated placed the fair value at $41,200 and the salvage value at $3,300. Machinery A's total cost of $176,200 includes installation expense of $580 and normal repairs and maintenance of $15,000. Salvage value is estimated at $7,300. Machinery A was sold on February 1, 2026. On October 1, 2025, Machinery B was acquired with a down payment of $6,950 and the remaining payments to be made in 11 annual installments of $7,210 each beginning October 1, 2025. The prevailing interest rate was 8%. The following data were abstracted from present value tables (rounded). NOVAK CORPORATION Fixed-Asset and Depreciation Schedule For Fiscal Years Ended September 30, 2025, and September 30 Acquisition Date Cost Salvage Depreciation Method Estimated Life i October 1, 2024 October 1, 2024 October 2, 2024 N/A N/A N/A (2) $38,500 Straight-line (5) N/A N/A N/A Under Construction $292,400 to date Straight-line 30 (7) ment October 2, 2024 3,300 150% declining-balance 10 October 2, 2024 (10) 7,300 Sum-of-the-years'-digits 8 (13) October 1, 2025 Straight-line 20 of $1.00 at 8% of $1.00 at 8% 10 years 0.463 10 years 6.710 11 years 0.429 11 years 7.139 15 years 0.315 15 years 8.559