structions prepare the journ. any) to record the impulin prepare any journal entries for the equipment at December 31, 2021 ment at December 31, 2021, is estimated to be $5.900,000 Repeat the requirements for (a) and (b) assuming that Roland intends to and that it has not been disposed of as of December 31, 2021. (LO 1) Groupwork (Comprehensive Depreciation Computations) manufacturer of steel products, began operations on October 1, 2019. The ac Kohlbeck has started the fixed asset and depreciation schedule presented as foi Kohlbeck Corporation Fixed-Asset and Depreciation Schedule For Fiscal Years Ended September 30, 2020, and September 30, 2021 Estimated Life in Depreciation Method Depreciation Expense Year Ended September 30 2020 2021 N/A N/A $13,600 (4) N/A N/A Years N/A Acquisition Date CostSalvage October 1, 2019S (1) N/A October 1, 2019 (2) S40.000 October 2, 2019 (5) N/A Under $320,000 - Construction to date Euipment October 2, 2019 (7) 3,000 Straight-line Straight line N/A Straight line N/A (3) (3) N/A 30 Ruilding A Land B Building B 10 (8) (9) October 2, 2019 (10) 150% declining balance Sum-of-the- years-digits Straight-line 6,000 Machinery A 20 - (14) (13) - October 1, 2020 Machinery B -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 dis position. 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. construction of Building B on the newly acquired land began on October 1, 2020. By September 30, VAL,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. An independent appraisal he salvage value at $3,000. normal repairs and meth sugg on February 1, need Foll $24 Depreciation, Impairments, and Depletion 5. Certain equipment was donated to the corporation by a local university. An indepe of the equipment when donated placed the fair value at $40,000 and the salvage value 6. Machinery A's total cost of $182,900 includes installation expense of $600 and normal ron maintenance of $14,900. Salvage value is estimated at $6,000. Machinery A was sold on Febr 2021. 7. On October 1, 2020, Machinery B was acquired with a down payment of $5,740 and the remainin payments to be made in 11 annual installments of $6,000 each beginning October 1, 2020. They valling interest rate was 8%. The following data were abstracted from present value tables (rounded Present Value of $1.00 at 8% Present Value of an Ordinary Annuity of $1.00 at 8% 10 years .463 10 years 6.710 11 years .429 11 years 7.139 15 years .315 15 years 8.559 Instructions For each numbered item on the schedule, supply the correct amount. (Round each answer to the neares dollar.) P11.11 (LO 1, 2) (Depreciation for Partial Periods-SL. Act., SYD. and DDB) On January 2018, a machine was purchased for $90,000. The machine has an estimated salvage value of $0.00 estimated useful life of 5 years. The machine can operate for 100.000 hours before it needs to be The company closed its books on December salvage value of $6,000 and an efore it needs to be replaced. that it has not USU L LE . LUGE u Groupwork (Comprehensive Depreciation Computations) Kohlbeck Corpora- facturer of steel products, began operations on October 1, 2019. The accounting depart- Wheck has started the fixed asset and depreciation schedule presented as follows. PIL.10 (LO 1) Group ban, a manufacturer ment of Kohlbeck hes Kohlbeck Corporation Fixed-Asset and Depreciation Schedule For Fiscal Years Ended September 30, 2020, and September 30, 2021 Assets Acquisition Date October 1, 2019 Land A Building A October 1, 2019 Land B October 2, 2019 Building B Under Construction Donated Equipment October 2, 2019 Cost $ (1) (2) (5) $320,000 to date (7) Salvage N/A $40,000 N/A - Depreciation Method N/A Straight-line N/A Straight-line Depreciation Expense Year Ended September 30 2020 2021 N/A N/A $13,600 (4) N/A N/A (6) Estimated Life in Life in Years N/A (3) N/A 30 10 (8) (11) (9) (12) Machinery A 3,000 150% declining- balance 6,000 Sum-of-the- years'-digits - Straight-line October 2, 2019 (10) 8 Machinery B October 1, 2020 (13) 20 - (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 dis- position - Land A and Building A were acquired from a predecessor corporation Kohlbeck paid $800,000 or the land and building together. At the time of acquisition, the land had an appraised value of 390,000, and the building had an appraised value of $810,000. and 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 p 50 per share. During October 2019, Kohlbeck paid $16.000 to demolish an existing building on this land so it could construct a new building. ruction of Building B on the newly acquired land began on October 1, 2020. By September 30, Kohlbeck had paid $320,000 of the estimated total construction costs of $450,000. It is estimated hat the building will be completed and occupied by July 2022. Depreciation, impairments, and Depletion 5. Certain equipment was donated to the corporation by a local university. An independe of the equipment when donated placed the fair value at $40,000 and the salvage value a 6. Machinery A's total cost of $182 900 includes installation expense of $600 and normal maintenance of $14,900. Salvage value is estimated at $6,000. Machinery A was sold on 2021. dependent appraisal value at $3,000. mal repairs and Id on February 1, 7. On October 1, 2020, Machinery B was acquired with a down payment of $5,740 and there payments to be made in 11 annual installments of $6,000 each beginning October 1, 2020. vailing interest rate was 8%. The following data were abstracted from present value tables (rou the remaining 2020. The pre Present Value of $1.00 at 8% Present Value of an Ordinary Annuity of $1.00 at 8 10 years 463 10 years 6.710 11 years 429 11 years 7.139 15 years 315 15 years 8.559 Instructions For each numbered item on the schedule, supply the correct amount. (Round each answer to the nearest dollar) DOS