Waterway Corporation, a manufacturer of steel products, began operations on October 1, 2016. The accounting department of Waterway 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 companys 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. Waterway paid $723,900 for the land and building together. At the time of acquisition, the land had an appraised value of $98,300, and the building had an appraised value of $884,700. 3. Land B was acquired on October 2, 2016, in exchange for 2,500 newly issued shares of Waterways common stock. At the date of acquisition, the stock had a par value of $5 per share and a fair value of $28 per share. During October 2016, Waterway paid $16,500 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 October 1, 2017. By September 30, 2018, Waterway had paid $339,400 of the estimated total construction costs of $409,000. It is estimated that the building will be completed and occupied by July 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 $42,800 and the salvage value at $2,800. 6. Machinery As total cost of $195,000 includes installation expense of $570 and normal repairs and maintenance of $15,300. Salvage value is estimated at $5,900. Machinery A was sold on February 1, 2018. 7. On October 1, 2017, Machinery B was acquired with a down payment of $6,210 and the remaining payments to be made in 11 annual installments of $6,470 each beginning October 1, 2017. The prevailing interest rate was 8%. The following data were abstracted from present value tables (rounded). Present value of $1.00 at 8% Present value of an ordinary annuity of $1.00 at 8% 10 years 0.463 10 years 6.710 11 years 0.429 11 years 7.139 15 years 0.315 15 years 8.559 Complete the schedule below. (Round answers to 0 decimal places, e.g. 45,892.) WATERWAY CORPORATION Fixed-Asset and Depreciation Schedule For Fiscal Years Ended September 30, 2017, and September 30, 2018 Depreciation Expense Year Ended September 30 Assets Acquisition Date Cost Salvage Depreciation Method Estimated Life in Years 2017 2018 Land A October 1, 2016

WATERWAY CORPORATION Fixed-Asset and Depreciation Schedule For Fiscal Years Ended September 30, 2017, and September 30, 2018

Depreciation Expense Year Ended September 30

Assets

Acquisition Date

Cost

Salvage

Depreciation Method

Estimated Life in Years

2017

2018

Land A

October 1, 2016

(1)

$

N/A

N/A

N/A

N/A

N/A

Building A

October 1, 2016

(2)

$42,400

Straight-line

(3)

$11,280

(4)

Land B

October 2, 2016

(5)

N/A

N/A

N/A

N/A

N/A

Building B

Under Construction

$339,400 to date

Straight-line

30

(6)

Donated Equipment

October 2, 2016

(7)

2,800

150% declining-balance

10

(8)

(9)

Machinery A

October 2, 2016

(10)

5,900

Sum-of-the-years'-digits

8

(11)

(12)

Machinery B

October 1, 2017

(13)

Straight-line

20

(14)