The Thompson Corporation, a manufacturer of steel products, began operations on October 1, 2019 The accounting department of Thompson 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 (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriatefactor(s) from the tables provided ) 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 Thompson paid $912,500 for the land and building together At the time of acquisition, the land had a fair value of $100,000 and the building had a fair value of $900,000 Land B was acquired on October 2, 2019, in exchange for 4,000 newly issued shares of Thompson's common stock At the date of acquisition, the stock had a par value of $5 per share and a fair value of $35 per share During October 2019, Thompson paid $11,400 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, 2021, Thompson had paid $310,000 of the estimated total construction costs of $400,000 Estimated completion and occupancy are July 2022 Certain equipment was donated to the corporation by the city An independent appraisal of the equipment when donated placed the fair value at $20,000 and the residual value at $3,000 Equipment A's total cost of $108,000 includes installation charges of $650 and normal repairs and maintenance of $12,900 Residual value is estimated at $6,000 Equipment A was sold on February 1, 2021 On October 1, 2020, Equipment B was acquired with a down payment of $5,000 and the remaining payments to be made in 10 annual installments of $5,000 each beginning October 1, 2021 The prevailing interest rate was 9 Required Help me find the correct amount for each answer box on the schedule (Round your intermediate calculations and final answers to the nearest whole dollar ) Thanks

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 28, 2024

The Thompson Corporation, a manufacturer of steel products, began operations on October 1, 2019. The accounting department of Thompson has started the fixed-asset and depreciation

The Thompson Corporation, a manufacturer of steel products, began operations on October 1, 2019. The accounting department of Thompson 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: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriatefactor(s) from the tables provided.)

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. Thompson paid $912,500 for the land and building together. At the time of acquisition, the land had a fair value of $100,000 and the building had a fair value of $900,000.
Land B was acquired on October 2, 2019, in exchange for 4,000 newly issued shares of Thompson's common stock. At the date of acquisition, the stock had a par value of $5 per share and a fair value of $35 per share. During October 2019, Thompson paid $11,400 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, 2021, Thompson had paid $310,000 of the estimated total construction costs of $400,000. Estimated completion and occupancy are July 2022.
Certain equipment was donated to the corporation by the city. An independent appraisal of the equipment when donated placed the fair value at $20,000 and the residual value at $3,000.
Equipment A's total cost of $108,000 includes installation charges of $650 and normal repairs and maintenance of $12,900. Residual value is estimated at $6,000. Equipment A was sold on February 1, 2021.
On October 1, 2020, Equipment B was acquired with a down payment of $5,000 and the remaining payments to be made in 10 annual installments of $5,000 each beginning October 1, 2021. The prevailing interest rate was 9%.

Required:

Help me find the correct amount for each answer box on the schedule. (Round your intermediate calculations and final answers to the nearest whole dollar.) Thanks!