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The Thompson Corporation, a manufacturer of steel products, began operations on October 1, 2016. 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, 2016. 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 appropriate factor(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 $732,500 for the land and building together. At the time of acquisition, the land had a fair value of $65,600 and the building had a fair value of $754,400.

Land B was acquired on October 2, 2016, in exchange for 2,200 newly issued shares of Thompsons common stock. At the date of acquisition, the stock had a par value of $5 per share and a fair value of $17 per share. During October 2016, Thompson paid $9,600 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, 2017. By September 30, 2018, Thompson had paid $130,000 of the estimated total construction costs of $220,000. Estimated completion and occupancy are July 2019.

Certain equipment was donated to the corporation by the city. An independent appraisal of the equipment when donated placed the fair value at $12,800 and the residual value at $1,200.

Machine As total cost of $114,000 includes installation charges of $470 and normal repairs and maintenance of $10,200. Residual value is estimated at $5,900. Machine A was sold on February 1, 2018.

On October 1, 2017, Machine B was acquired with a down payment of $3,200 and the remaining payments to be made in 10 annual installments of $3,200 each beginning October 1, 2018. The prevailing interest rate was 8%.

Required: Supply the correct amount for each answer box on the schedule. (Round your final answers to nearest whole dollar.) image text in transcribed

THOMPSON CORPORATION Fixed Asset and Depreciation Schedule For Fiscal Years Ended September 30, 2017, and September 30, 2018 Acquisition Date Depreciation Method Estimated Life in Years Depreciation for Year Ended 9/30 Assets Cost Residual 2017 2018 N/A N/A $40,300 N/A Land A Building A Land B Building E Donated Equipment 10/2/16 Machine A Machine B 10/1/16 10/1/16 10/2/16 Under construction 130,000 to date N/A SL N/A SL 1,200 | 150% Declining balance 5,900 Sum-of-the years'-digits SL N/A N/A 13,200 N/A N/A 30 10 10 15 N/A 10/2/16 THOMPSON CORPORATION Fixed Asset and Depreciation Schedule For Fiscal Years Ended September 30, 2017, and September 30, 2018 Acquisition Date Depreciation Method Estimated Life in Years Depreciation for Year Ended 9/30 Assets Cost Residual 2017 2018 N/A N/A $40,300 N/A Land A Building A Land B Building E Donated Equipment 10/2/16 Machine A Machine B 10/1/16 10/1/16 10/2/16 Under construction 130,000 to date N/A SL N/A SL 1,200 | 150% Declining balance 5,900 Sum-of-the years'-digits SL N/A N/A 13,200 N/A N/A 30 10 10 15 N/A 10/2/16

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