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, 2022. The accounting department of Thompson has started the fixed-asset and depreciation

image text in transcribed
image text in transcribed
The Thompson Corporation, a manufacturer of steel products, began operations on October 1, 2022. 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 dato already on the schedute are correct, you have obtained the following information. from the company's records and personnel: Note: Use tables, Excel, or a financial calculator. (FV or S1, PV of S1, FVA of S1, PVA or S1, EVAD of S1 and PVAD of S1) 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 $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. c. Land B was acquired on October 2, 2022, in exchange for 2,200 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 $17 per share. During October 2022. Thompson paid $9,600 to demolsh an existing building on this land so it could construct a new bulding. d. Construction of Builing B on the newly acquired land began on October 1, 2023. By September 30, 2024, Thompson had paid $130.000 of the estimated totot construction costs of $220,000. Estimated completion and occupancy are July 2025 . e. Certain equipment was donated to the corporation by the city. An independent appraisol of the equipment when donated placed the fair value at $12,800 and the residual value at $1,200. t. Equipment A's total cost of $120,800 includes installotion charges of $470 and normal repairs and maintenance of $11,000. Residual value is estimated at $9,000. Equipment A was sold on February 1, 2024. 9. On October 1, 2023. Equipment B was ocquired with a down payment of $3.200 and the remaining payments to be made in 10 annuat instattiments of $3,200 esch beginning October 1,2024, The prevailing interest rate was 8% Required: Supply the correct amount for each answer box ori the schedule. Note: Dound your intermediate calculations and final answers to the nearest whole dollar: Required: Supply the correct amount for each answer box on the schedule. Note: Round your intermedlate calculations and final answers to the nearest whole dollar

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

Information Technology Control And Audit

Authors: Sandra Senft, Frederick Gallegos, Aleksandra Davis

4th Edition

1439893209, 978-1439893203

More Books

Students also viewed these Accounting questions

Question

=+and show that the infimum and supremum are always achieved.

Answered: 1 week ago