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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 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. EVA of S1. PVA of SI, FVAD of S1 and PVAD of $) (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 $792,500 for the land and building together At the time of acquisition, the land had a fair value of $70,400 and the building had a fair value of $809,600 c. Land B was acquired on October 2, 2016, in exchange for 2.800 newly issued shares of Thompson's common stock. At the date of the stock had a par value of $5 per share and a fair value of $23 per share. During October 2016, Thompson paid d. Construction of Building B on the newly acquired land began on October 1, 2017. By September 30, 2018, Thompson had paid e. Certain equipment was donated to the corporation by the city. An independent appraisal of the equipment when donated placed f Machine A's total cost of $116,000 includes installation charges of $550 and normal repairs and maintenance of $13,000. Residual g On October 1, 2017 $10,200 to demolish an existing building on this land so it could construct a new building. $190,000 of the estimated total construction costs of $280,000. Estimated completion and the fair value at $15,200 and the residual value at $1,800. value is estimated at $5,800. Machine A was sold on February 1, 2018 installments of $4,000 each beginning October 1, 2018. The prevailing interest rate was 7% ncy are July 2019. B was acquired with a down payment of $4,000 and the remaining payments to be made in 10 annual Required: Supply the correct amount for each answer box on the schedule. (Round your final answers to nearest whole dollar) TH N CORPO Fixed Asset and Depreciation Schedule For Fiscal Years Ended September 30, 2017, and September 30, 20118 Acquisition Date Estimated Life in Years Depreciation for Year Ended 9/30 Cost ResidualDepreciation 2017 2018 N/A N/A 10/1/16 10/1/16 NA $57,100 SL S 14,000 f Machine A's total cost of$,00u value is estimated at $5,800. Machine A was sold on February 1, 2018. g On October 1, 2017, Machine B was acquired with a down payment of $4,000 and the remaining payments to be made in 10 annu installments of $4,000 each beginning October 1, 2018. The prevailing interest rate was 7%. Required: Supply the correct amount for each answer box on the schedule. (Round your final answers to nearest whole dollar.) THOMPSON CORPORATION Fixed Asset and Depreciation Schedule For Fiscal Years Ended September 30, 2017, and September 30, 2018 Acquisition Date Depreciation for Year Ended 9/30 Assets Cost ResidualDepreclation Method Life in Years 2017 2018 10/1/16 N/A $57,100 NIA N/A SL N/A SL N/A N/A S 14,000 N/A N/A Building A10/1/16 Land B Building Donated Equipment 10/2/16 Machine A MachineB 10/2/16 N/A 30 N/A Under construction 190,000 to date | 1.800| 150% Declining balance 5,800 Sum-of-the years-digits SL 10/2/16 15 Prev 1of 6ll Next>
