Chapter 11 Pre-Bulit Problems 12 The Thompson Corporation, a manufacturer of ste

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Chapter 11 Pre-Bulit Problems 12 The Thompson Corporation, a manufacturer of steel products, began operations on Thompson has started the fixed-asset and depreciation schedule schedule. In addition to ascertaining that the data already on the schedul from the company's records and appropriate factor(s) from the tables provided.) October 1, 2016. The accounting department of presented below. You have been asked to assist in completing this 10 personnel EyofSI, Pyof$1. EVAof$1, PVAofS1·EVADofS1 and PVAD of SI) (Use e are correct, you have obtained the following information 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 $822.500 for the land and builiding together References C. Land B was acquired on October At the time of a the land had a fair value of $91,000 and the building had a fair value of $819,000. 2, 2016, in exchange for 3,100 newly issued shares of Thompson's common stock. At the date of 2016 acquisition, the stock had a par value of $5 per share and a fair value of $26 per share. During October 2016, Thompson pakd 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 t Machine A's total cost of $111,000 includes ins g. On October 1, 2017, Machine B was acquired with a down payment of $4,100 and the remaining payments to be made in 10 annual $10,500 to demolish an existing building on this land so it could construct a new building $220,000 of the estimated total c the fair value at $16,400 and the residual value at $2.100. value is estimated at $5,500. Machine A was sold on February 1, 2018. installments of $400 each beginning October 1, 2018. The prevailing interest rate was 9%. n costs of $310,000. Estimated completion and occupancy are July 2019. charges of $560 and normal repairs and maintenance of $11,000. Residual Required: Supply the correct amount for each answer box on the schedule. (Round your final answers to nearest whole dollar) Fixed Asset and Depreciation Schedule Prew 12 of 13 Next>

Explanation / Answer

Depreciation calculations:

Assets Acquisition Date Cost Residual Depreciation Method Estimated Life in Years 2017 2018 Land A 10/1/2016           82,250 N/A N/A N/A N/A N/A Building A 10/1/2016         740,250      49,350 SL                                    49           14,100                       14,100 Land B 10/1/2016           91,100 N/A N/A N/A N/A N/A Building B Under construction         220,000 - SL 30 - 0 Donated Equipment 10/2/2016           16,400        2,100 150% Declining balance* 10             2,091                         1,777 Machine A 10/2/2016           99,000        5,500 Sum-of-the-years'-digits** 9           16,622                       14,544 Machine B 10/1/2017           30,412 - SL 16 -                         1,901

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