Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
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. P of $1. EVA of S1. PVA of $1. EVAD of $1 and PVAD of S1) (Use appropriate factor(s) from the tables provided.) a Depreciation is computed from the first of the month of acquisition to the first of the month of disposition b. Land A and Building A were acquired from a predecessor corporation Thompson paid $712.500 for the land and building together At the time of acquisition the land had a fair value of $96,000 and the building had a fair value of $704,000 c Land B was acquired on October 2, 2019. in exchange for 2.000 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 $15 per share During October 2019, Thompson pald $9.400 to demolish an existing building on this land so it could construct a new building, d. Construction of Building on the newly acquired land began on October 1, 2020 By September 30, 2021 Thompson had paid $110,000 of the estimated total construction costs of $200,000. Estimated completion and occupancy are July 2022 e Certain equipment was donated to the corporation by the city. An independent appraisal of the equipment when donated placed the fair value at $12.000 and the residual value at $1,000 1. Equipment As total cost of $101.000 includes installation charges of $450 and normal repairs and maintenance of $10,000. Residual value is estimated at $6.300. Equipment A was sold on February 1, 2021 g on October 1, 2020. Equipment was acquired with a down payment of $3,000 and the remaining payments to be made in 10 annual installments of $3.000 each beginning October 1, 2021. The prevalling interest rate was 794 Required: Supply the correct amount for each answer box on the schedule (Round your intermediate calculations and final answers to the nearest whole dollar.) THOMPSON CORPORATION Fixed Asset and Depreciation Schedule Mevdig interest rate was /% Required: Supply the correct amount for each answer box on the schedule. (Round your intermediate calculations and final answers to the nearest whole dollar.) THOMPSON CORPORATION Fixed Asset and Depreciation Schedule For Fiscal Years Ended September 30, 2020. and September 30.2021 Assets Acquisition Date Cost Depreciation Method Residual Depreciation for Year Ended 9/30 Estimated Life in Years 2021 NA N/A NA 42.000 NA 2020 NA 13,000 NA $ NIA NA Land A Building A Land B Building B Donated Equipment Equipment Equipment B 10/1/2019 10/1/2019 10/2/2019 Under construction 10/2/2019 10/2/2019 10/1/2020 110,000 to date + not applicable Straight line not applicable Straight-line 200% Declining balance Sum of the years-digits Sernight-line 30 10 1.000 6300 10 15

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Bank Strategy, Governance And Ratings

Authors: P. Molyneux

3rd Edition

0230313345, 9780230313347

More Books

Students also viewed these Accounting questions

Question

Cite the characteristics of satisfying intimate relationships.

Answered: 1 week ago

Question

you are the only BLS provider responding to witnesse

Answered: 1 week ago