Pina Colada Corporation, a manufacturer of steel products, began operations on October 1, 2019. Pina Colad department has begun to prepare the capital asset and depreciation schedule that follows. You have been asked to assist in completing this schedule. In addition to determining that the data already on the schedule are correct, you have obtained the following information from the company's records and personnel: 1. 2 3. 4 Depreciation is calculated from the first day of the month of acquisition to the first day of the month of disposition. Land A and Building A were acquired together for $780,000. At the time of acquisition, the land had an appraised value of $85,000 and the building had an appraised value of $765,000. Land B was acquired on October 2, 2019, in exchange for 4,500 newly issued common shares. At the date of acquisition, the shares had a fair value of $40 each. During October 2019. Pina Colada paid $14,000 to demolish an existing building on this land so that it could construct a new building, Construction of Building B on the newly acquired land began on October 1, 2020. By September 30, 2021. Pina Colada had paid $300,000 of the estimated total construction costs of $430,000. It is estimated that the building will be completed and occupied by July 2022 Certain equipment was donated to the corporation by a local university. An independent appraisal of the equipment when it was donated estimated its fair value at $20,000 and the residual value at $2.000, Machine A's total cost of $173,900 includes an installation expense of $600 and normal repairs and maintenance of $13.900. Its residual value is estimated at $6,000. Machine A was sold on February 1, 2021. 5. 6. 7. On October 1, 2020, Machine was acquired with a down payment of $2.740 and the remaining payments to be made in 11 annual instalments of $6,000 each, beginning October 1, 2020. The prevailing interest rate was 8%. The following data were determined from present-value tables and are rounded PV of $1 at 8x PV of an ordinary Annuity of $1 at 8% 10 years 10 years 0.463 6.710 11 years 0.429 11 years 7.139 15 years 0.315 15 years 8.559 PINA COLADA CORPORATION Capital Asset and Depreciation Sched For Fiscal Years Ended September 30, 2020, and Sep Residual Value Depreciation Method Cost Assets Acquisition Date N/A N/A Land A Oct. 1. 2019 (1) $ Straight-line (3) $35.000 Building A Oct. 1. 2019 (2) (5) NA NA Land Oct.2.2019 Straight-line $300,000 to date Building B Under construction (71 2.000 150% declining-balance Oct.2.2019 Donated equipment (10) 6.000 Double-declining balance Machine A Oct 2.2019 113) Straight-line Machine B Oct 1.2020 PINA COLADA CORPORATION pital Asset and Depreciation Schedule Ended September 30, 2020, and September 30, 2021 Depreciation Expense, Year Ended September 30 Depreciation Method Estimated Life in Years 2020 2021 NA N/A N/A N/A Straight-line (3) $ 16,675 (4) NA NA N/A N/A Straight-line 40 (6) 150% declining Lalance 10 (8) 193 Double-declining-balance 8 (11) (12) Straight-line 20 (14) NA- Not applicable