Problem 11-10 I am having trouble with this question. If you provide me with answers and an explanation, itll be greatly appreciated
Problem 11-10 Your answer is partially correct. Try again. Kohlbeck Corporation, a manufacturer of steel products, began operations on October 1, 2016. The accounting department of Kohibeck 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. Kohlbeck paid $800,000 for the land and building together. At the time of acquisition, the land had an appralsed value of $90,000, and the building had an appraised value of $810,000 value of $30 per share. During October 2016, Kohlbeck paid $16,000 to demolish an existing building on this land so it could construct a new building. estimated that the building will be completed and occupied by July 2019. $3,000. February 1, 2018 prevailing interest rate was 8%. The following data were abstracted from present value tables (rounded). 3. Land B was acquired on October 2, 2016, in exchange for 2,500 newly issued shares of Kohibeck's common stock. At the date of acquisition, the stock had a par value of $5 per share and a fair 4. Construction of Building B on the newly acquired land began on October 1, 2017. By September 30, 2018, Kohlbeck had paild $320,000 of the estimated total construction costs of $450,000. It is . 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 6. Machinery A's total cost of $182,900 includes instalation expense of $600 and normal repairs and maintenance of $14,900. Salvage value is estimated at $6,000. Machinery A was sold or 7. On October 1, 2017, 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, 2017. The Present value of an ordinary annuity of$1.00 at 8% Present value of$1.00 at % 10 years 0.463 11 years 0.429 15 years 0.315 10 years 11 years7.139 15 years 6.710 8.559 KOHLBECK CORPORATION and Depreciation Schedule For Fiscal Years Ended September 30, 2017, and September 30, 2018 Depreciation Expense Year Ended September 30 Assets 2017 Acquisition Date October 1, 2016 (1) October 1, 2016 () October 2, 2016 (5) Under Construction$320,000 to date October 2, 2016 October 2, 2016 October 1, 2017 Cost Salvage Depreciation Method Estimated Life in Years 2018 Land A N/A N/A N/A N/A N/A Building A 40,000 Straight-line $13,600 (4) Land B Building Donated Equipment Machinery A Machinery B N/A N/A Straight-line 150% declining-balance N/A N/A N/A 30 (7) (10) (13) 3,000 10 6,000 Sum-of-the-years-digits (12) Straight-line 20 (14)
