*Problem 11-10 Flint Corporation, a manufacturer of steel products, began operations on October 1, 2016. The accounting department of Flint 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 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. Flint paid $799,000 for the land and building together. At the time of acquisition, the land had an appraised value of $94,400, and the building had an appraised value of $849,600 3. Land B was acquired on October 2, 2016, in exchange for 2,400 newly issued shares of Flint's common stock. At the date of acquisition, the stock had a par value of $5 per share and a fair value of $32 per share. During October 2016, Flint paid $17,100 to demolish an existing 4. Construction of Building B on the newly acquired land began on October 1, 2017. By September 30, 2018, Flint had paid $348,200 of the 5. Certain equipment was donated to the corporation by a local university. An independent appraisal of the equipment when donated placed the 6. Machinery A's total cost of $174,300 includes installation expense of 650 and normal repairs and maintenance of $16,300. Salvage value is 7. On October 1, 2017, Machinery B was acquired with a down payment of $5,360 and the remaining payments to be made in 11 annual building on this land so it could construct a new building estimated total construction costs of $442,900. It is estimated that the building will be completed and occupied by July 2019 fair value at $41,700 and the salvage value at $3,000 estimated at $6,200. Machinery A was sold on February 1, 2018 installments of $5,620 each beginning October 1, 2017, The prevailing interest rate was 8%. The following data were abstracted from present value tables (rounded) Present value of an ordinary annuity of $1.00 at 890 Present value of $1.00 at 890 10 years 0.463 11 years 15 years 10 years 0.429 11 years 0.31515 years 6.710 7.139 8.559 Complete the schedule below. (Round answers to 0 decimal places, e.g. 45,892.) FLINT CORPORATION Fixed-Asset and Depreciation Schedule For Fiscal Years Ended September 30, 2017, and September 30, 2018 Depreciation Expense Year Ended September 30 Estimated Life in Years Acquisition Date October 1, 2016 (1) $ October 1, 2016 (2) October 2, 2016 (5) Under Construction date Assets Cost Salvage Depreciation Method 2017 2018 Land A BuildingA Land B BuildingB Donated EquipmentOctober 2, 2016 Machinery A Machinery B N/A $37,700 N/A N/A Straight-line N/A Straight-line N/A N/A (3) $14,498 (4) $348,200 to (7) (10) (13) 3,000 150% declining-balance 10 (8) October 2, 2016 6,200Sum-of-the-years'-digits 8 (11) (12) October 1, 2017 Straight-line (14)
