This assignment covers topics from Chapters 10, 11 & 12. You are encouraged to work together. ASSIGNMENT 1 (70 POINTS) Remington Steel is a manufacturer of steel products with revenues of over $50B per year. The accounting department of Remington has started the following fixed-asset depreciation schedule for the fiscal year ending June 30, 2019. You have been asked to assist in completing this schedule. In addition to ascertaining that the data in the schedule are accurate, 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 disposition. 2. Land A and Building A were acquired from a predecessor corporation. Remington paid $2,000,000 for the land and building together. At the time of acquisition, the land had an appraised value of $480,000, and the building had an appraised value of $1,920,000. 3. Land B was acquired on November 1, 2018, in exchange for 90,000 shares of Remington's common stock. At the date of acquisition, the stock had a par value of $1 per share and a fair value of $30 per share. Remington also paid $50,000 to demolish an existing building on this land so it could construct a new building. 4. Construction of Building B on the newly acquired land began on February 1, 2019. As of June 30, 2019, Remington had paid $320,000 of the estimated total construction It is estimated that the building will be completed and occupied and in service by December 2019. 5. Certain equipment was donated to the corporation by a local university. An independent appraisal of the equipment when donated placed the fair value at $120,000 and the salvage value at $10,000. 6. Machinery A's total cost of $250,000 includes transportation expense of $1,800, installation cost of $12,300 and maintenance costs of $6,000. Salvage value is estimated at $2,000. Machinery A was sold on September 30, 2018. 7. On July 1, 2018, Machinery B was acquired with a down payment of $35,840 and the remaining payments to be made in 11 annual installments of $3,000 each beginning July 1, 2018. The prevailing interest rate was 5%. (The present value of an annuity due of $1 at 5% is 8.72) REMINGTON STEEL CORPORATION Fixed-Asset Depreciation Schedule For Fiscal Years Ended June 30, 2018, and June 30, 2019 Assets Acquisition Date Cost Salvage Saha Estimated Life in Years Depreciation Method Depreciation Expense Year Ended June 30 2018 2019 NIA NA $56.000 $ (1) N/A Land A Building A Land B July 1, 2017 July 1, 2017 November 1, 2019 NA $200,000 NIA NIA Straight-line N/A $320,000 to date Building B Under Construction TBD BB33 Donated Equipment April 1, 2018 Straight-line Double Declining- balance Sum-of-the- years-digits Straight-line 10,000 Machinery A Machinery B July 1, 2017 July 1, 2018 (10) (13) 2,000 8.000 Instructions Fill in the blanks for items in the table above numbered (1) thru (14). Use the form on the following page for all answers - you may include a separate page providing additional information supporting your answers. The information you need to arrive at the answer may be included in both the schedule and the information on the first page. Read the problem carefully and note the fiscal year for Remington Steel Corporation. It is very important that you show all your work i.e., supporting calculations, schedules, etc. since some answers require work done earlier. Obviously if your earlier answer was incorrect, the next answer will also be incorrect. Therefore, consistency and detailed work will improve your score. Assignment 1 - (70 points) Please provide your answers in the table below. If you have more details, they may be attached separately. Answer Details 13