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The Thompson Corporation, a manufacturer of steel products, began operations on October 1, 2019. The accounting...

Question:

The Thompson Corporation, a manufacturer of steel products, began operations on October 1, 2019. The accounting department of

The Thompson Corporation, a manufacturer of steel products, began operations on October 1, 2019. 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.) 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 $852,500 for the land and building together. At the time of acquisition, the land had a fair value of $94,000 and the building had a fair value of $846,000. c. Land B was acquired on October 2, 2019, in exchange for 3,400 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 $29 per share. During October 2019, Thompson paid $10,800 to demolish an existing building on this land so it could construct a new building. d. Construction of Building B on the newly acquired land began on October 1, 2020. By September 30, 2021, Thompson had paid $250,000 of the estimated total construction costs of $340,000. Estimated completion and occupancy are July 2022. e. Certain equipment was donated to the corporation by the city. An independent appraisal of the equipment when donated placed the fair value at $17,600 and the residual value at $2,400. f. Equipment A's total cost of $111,000 includes installation charges of $590 and normal repairs and maintenance of $16,000. Residual value is estimated at $4,800. Equipment A was sold on February 1, 2021. g. On October 1, 2020, Equipment B was acquired with a down payment of $4,400 and the remaining payments to be made in 10 annual installments of $4,400 each beginning October 1, 2021. The prevailing interest rate was 9%. Required: Supply the correct amount for each answer box on the schedule. (Round your intermediate calculations and final answers to the nearest whole dollar.) THOMPSON CORPORATION Fixed Asset and Depreciation Schedule For Fiscal Years Ended September 30, 2020, and September 30, 2021 Assets Acquisition Date Cost Residual Land A Building A Land B N/A $ 61,650 N/A 10/1/2019 10/1/2019 10/2/2019 Under construction 10/2/2019 Depreciation Estimated Depreciation for Life in Year Ended 9/30 Method Years 2020 2021 not applicable N/A N/A N/A Straight-line $ 14,4001 not applicable N/A N/A N/A Straight-line 30 200% Declining 10 balance Sum-of-the years'- 10 digits Straight-line 151 Building B 250,000 to date 2,400) Donated Equipment Equipment A Equipment B 10/2/2019 10/1/2020 -

Answers

k CamScanner Scanned with Table 1. + Present Value Interest Factor for an Annuity 1- PVIFA (k,n) = (1+k) Period n 1% 2% 3% 4CamScanner Scanned with Table A.4 (contd) Period n 14% 15% 0 1.000 1.000 0.877 0.870 1.647 1.626 2.322 2.283 | 2.914 | 2.855estimated Depreciation h cost Acquisition Depreciation method Assets Residual value Life in Years year ended Y30 date 2010 eutimated life of Building A a 76725 gustis- & 61,650 (Rosidial values $14,40 Coeprecation = 44. Year Depreciation as 2020 forBut in Year 3 on 1st feb 2011 the asset is sold So, Depreciation from oct 2020 to you 2020 only &mantha 913,2074 294,373 Come

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