S The Thompson Corporation, a manufacturer of steel products, began operations on October 1, 2019. The...
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S 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: (EV of $1. PV of $1. EVA 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 $872,500 for the land and building together. At the time of acquisition, the land had a fair value of $76,800 and the building had a fair value of $883,200. c. Land B was acquired on October 2, 2019, in exchange for 3,600 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 $31 per share. During October 2019, Thompson paid $11,000 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 $270,000 of the estimated total construction costs of $360,000. 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 $18,400 and the residual value at $2,600. f. Equipment A's total cost of $109,000 includes installation charges of $610 and normal repairs and maintenance of $12,500. Residual value is estimated at $5,200. Equipment A was sold on February 1, 2021. g. On October 1, 2020, Equipment B was acquired with a down payment of $4,600 and the remaining payments to be made in 10 annual installments of $4,600 each beginning October 1, 2021. The prevailing interest rate was 8%. 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 Acquisition Denreciation. Estimatat Depreciation for Supply the correct amount for each answer box on the schedule. (Round your intermediate calculations and final answers to the nearest whole dollar.) Assets Land A Building A Land B Building B Donated Equipment Equipment A Equipment B THOMPSON CORPORATION Fixed Asset and Depreciation Schedule For Fiscal Years Ended September 30, 2020, and September 30, 2021 Acquisition Date: 10/1/2019 10/1/2019 10/2/2019 Under construction 10/2/2019 10/2/2019 10/1/2020 Cost 270,000 to date Residual $ N/A 72,700 N/A 2,600 5,200 Depreciation Method not applicable Straight-line not applicable Straight-line 200% Declining balance Sum-of-the years'-digits Straight-line Estimated Life in Years N/A N/A 30 10 10 15 Depreciation for Year Ended 9/30 2020 N/A $ 14,600 N/A 2021 N/A N/A Google Docs TABLE 2 Present Value of $1 PV= .com 15 (2+0) Brightspace NOT IN MyLab & Masterin... Bookmarks CANVAS 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.046 5.5% 60% 7,0% 8.0% 10.0% 11.0% 20.0% 097087 096618 056154 095694 095238 094787 0.94340 093458 0.92393 091743 0.90909 090090 039286 0.83333 1 099010 0.98322 098039 097561 2 098030 097066 0.96117 095181 094260 093351 0.92456 091573 0.90703 089845 0.89000 0.87344 085734 0.84168 022645 031162 079719 0.69444 3 097059 0.95632 094232 092860 091514 090194 088900 0.87630 0.86384 085161 0.89963 081630 0.79383 0.77218 075131 073119 071178 0.57870 4096098 094218 092385 0.90595 088849 087144 0.85480 083856 082270 080722 0.79209 0.76290 073503 0,70843 0.68301 0.65873 063552 0.48225 5 0.95147 0.92826 090573 088385 0.551 084197 082193 080245 0.78353 0.76513 0.74726 071299 068058 064993 062092 059345 056743 0.40188 9406 SCHOOL CALEND... 60.94205 0.91454 0.38797 0.86230 0.83748 0.81350 8.79031 8.76790 0.74622 0.72525 0.70496 0.66634 0.43017 0.59627 0.56447 0.53464 0.50663 0.33490 7 093272 090103 087056 034127 0.81309 078599 0.75992 073483 071068 068744 0.66506 062275 0.58349 054703 051316 0.48166 045235 0.27908 3 092348 0.88771 085349 082075 0.78941 075941 073069 070319 067684 0.65160 062741 0.58201 0.54027 0.50187 0.46651 0.43393 0.40353 0.23257 TREGTO 190950 1606EO OO OOO S20050 E6E50 061650 SOL190 191190 062290 65ZOLO ELEELO CHOLO ELOOKO PERO SEO HH606 10 0.90529 0.86167 082035 0.78120 0.74409 0.70892 067556 0.64393 0.61391 0.58543 055839 050835 046319 042241 038554 035218 0.32197 016151 11 0.59632 0.54393 080426 8.76214 0.72242 0.68495 0.64958 0.61620 0.58468 0.55491 0.52679 0.47509 042888 0.38753 0.355049 8.31728 0.28745 0.13459 12, 0.88745 083639 0.78549 074356 0.70138 066178 0.62460 0.58966 055684 052598 0.49697 044401 0.39711 0.35553 0.31863 028554 025668 011216 13 087866 0.82403 077303 072542 0.68095 063940 0.50057 056427 0.53032 0.49856 0.46884 041496 036770 0.32618 028966 025751 0.22917 0.09346 14 0.86996 0.81185 0.75788 0.70773 066112 061778 0.57748 0.53997, 050507 0.47257 044230 0.38782 034046 029925 026333 023199 020462 0.07789 15 086135 0.79985 0.74301 009047 064156 059689 055526 051672 045102 044791 041727 036245 031524 0.27454 023939 020900 018270 006491 16 6.85281 0.78803 872545 0.67362 0.62317 0.57671 653391 049447 0.45811 0.42458 0.39365 0.33875 0.29189 0.25187 021763 0.15829 0.16312 0.05409 LOSOO 19TO COSTO PELETO LOSEZO LEOLTO 459160 9EILEO SCOPO DESCO SIELO LECISO OZESSO C05000 OCESSO SINILO GELCO SEMED (1 PLEDD HOOKED TRESTO 960 661120 520520 956CO HOSED MICO ESSIVO OSO EPEGNO DEBESO 650 211190 91000 1690 209CEO I 061500 11911820LETO ISE910 GHSTO ILIETO 159LTO SOCCO 951950 ELSGEO OCENO POLO 95050 60LEO ESSC90 19000 10CELO PELES0 61 BOSCOD LEDED SONCED TO POCEO SSMIZO STO ORITED ELCHEO 69LEO 1910 6E950 LSC050 99ESSO COIvo LECCO CHCO 156180 02 PLEZO STO PATITO CISTO ALTO 9996TO 151920 916209 SED LESED SELESD 5650 LS 0STELO PINO T SC100195900 OLINDO ESTOLO OCIO QUESTO Steto SEO 999LTO LOOEEO OLLED CIOED PACEDO 1616PO SESSO ELEC90 S90 ESERCO * Proto o 1000 02600 165110 20910 SZT0 00LEZO ECCOCO DESSZO ELZEED ZISCED SECZNO SOLO GESECO (56090 126890 LLALLO 28 0.75684 065910 0.57437 050088 043708 038165 0.33348 0.29157 02550W 0.22333 0.19563 015040 011591 008955 0.00934 005383 0.04187 000607 29 074934 064936 0.56311 048866 042435 0.36875 032085 0.27902 024295 021168 015456 014056 0.10733 0,08215 006304 0.04849 0.03738 0.00500 30 0.74192 0.63976 655207 647674 0.41199 0.35628 0.30832 0.24700 0.25138 0.20064 8.37411 013137 809938 0.07537 0.05731 0.04368 31 073458 043031 054125 0.46311 639999 034423 029640 025550 022016 019018 016425 012277 009202 000915 0.05210 0.03935 002980 000351 40 067165 015126 045289 037243 630656 025257 020829 017193 0.14205 011746 009722 006678 004603 003184 0.02209 001538 001075 0.00068 TCP000 SESEO'S S 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: (EV of $1. PV of $1. EVA 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 $872,500 for the land and building together. At the time of acquisition, the land had a fair value of $76,800 and the building had a fair value of $883,200. c. Land B was acquired on October 2, 2019, in exchange for 3,600 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 $31 per share. During October 2019, Thompson paid $11,000 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 $270,000 of the estimated total construction costs of $360,000. 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 $18,400 and the residual value at $2,600. f. Equipment A's total cost of $109,000 includes installation charges of $610 and normal repairs and maintenance of $12,500. Residual value is estimated at $5,200. Equipment A was sold on February 1, 2021. g. On October 1, 2020, Equipment B was acquired with a down payment of $4,600 and the remaining payments to be made in 10 annual installments of $4,600 each beginning October 1, 2021. The prevailing interest rate was 8%. 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 Acquisition Denreciation. Estimatat Depreciation for Supply the correct amount for each answer box on the schedule. (Round your intermediate calculations and final answers to the nearest whole dollar.) Assets Land A Building A Land B Building B Donated Equipment Equipment A Equipment B THOMPSON CORPORATION Fixed Asset and Depreciation Schedule For Fiscal Years Ended September 30, 2020, and September 30, 2021 Acquisition Date: 10/1/2019 10/1/2019 10/2/2019 Under construction 10/2/2019 10/2/2019 10/1/2020 Cost 270,000 to date Residual $ N/A 72,700 N/A 2,600 5,200 Depreciation Method not applicable Straight-line not applicable Straight-line 200% Declining balance Sum-of-the years'-digits Straight-line Estimated Life in Years N/A N/A 30 10 10 15 Depreciation for Year Ended 9/30 2020 N/A $ 14,600 N/A 2021 N/A N/A Google Docs TABLE 2 Present Value of $1 PV= .com 15 (2+0) Brightspace NOT IN MyLab & Masterin... Bookmarks CANVAS 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.046 5.5% 60% 7,0% 8.0% 10.0% 11.0% 20.0% 097087 096618 056154 095694 095238 094787 0.94340 093458 0.92393 091743 0.90909 090090 039286 0.83333 1 099010 0.98322 098039 097561 2 098030 097066 0.96117 095181 094260 093351 0.92456 091573 0.90703 089845 0.89000 0.87344 085734 0.84168 022645 031162 079719 0.69444 3 097059 0.95632 094232 092860 091514 090194 088900 0.87630 0.86384 085161 0.89963 081630 0.79383 0.77218 075131 073119 071178 0.57870 4096098 094218 092385 0.90595 088849 087144 0.85480 083856 082270 080722 0.79209 0.76290 073503 0,70843 0.68301 0.65873 063552 0.48225 5 0.95147 0.92826 090573 088385 0.551 084197 082193 080245 0.78353 0.76513 0.74726 071299 068058 064993 062092 059345 056743 0.40188 9406 SCHOOL CALEND... 60.94205 0.91454 0.38797 0.86230 0.83748 0.81350 8.79031 8.76790 0.74622 0.72525 0.70496 0.66634 0.43017 0.59627 0.56447 0.53464 0.50663 0.33490 7 093272 090103 087056 034127 0.81309 078599 0.75992 073483 071068 068744 0.66506 062275 0.58349 054703 051316 0.48166 045235 0.27908 3 092348 0.88771 085349 082075 0.78941 075941 073069 070319 067684 0.65160 062741 0.58201 0.54027 0.50187 0.46651 0.43393 0.40353 0.23257 TREGTO 190950 1606EO OO OOO S20050 E6E50 061650 SOL190 191190 062290 65ZOLO ELEELO CHOLO ELOOKO PERO SEO HH606 10 0.90529 0.86167 082035 0.78120 0.74409 0.70892 067556 0.64393 0.61391 0.58543 055839 050835 046319 042241 038554 035218 0.32197 016151 11 0.59632 0.54393 080426 8.76214 0.72242 0.68495 0.64958 0.61620 0.58468 0.55491 0.52679 0.47509 042888 0.38753 0.355049 8.31728 0.28745 0.13459 12, 0.88745 083639 0.78549 074356 0.70138 066178 0.62460 0.58966 055684 052598 0.49697 044401 0.39711 0.35553 0.31863 028554 025668 011216 13 087866 0.82403 077303 072542 0.68095 063940 0.50057 056427 0.53032 0.49856 0.46884 041496 036770 0.32618 028966 025751 0.22917 0.09346 14 0.86996 0.81185 0.75788 0.70773 066112 061778 0.57748 0.53997, 050507 0.47257 044230 0.38782 034046 029925 026333 023199 020462 0.07789 15 086135 0.79985 0.74301 009047 064156 059689 055526 051672 045102 044791 041727 036245 031524 0.27454 023939 020900 018270 006491 16 6.85281 0.78803 872545 0.67362 0.62317 0.57671 653391 049447 0.45811 0.42458 0.39365 0.33875 0.29189 0.25187 021763 0.15829 0.16312 0.05409 LOSOO 19TO COSTO PELETO LOSEZO LEOLTO 459160 9EILEO SCOPO DESCO SIELO LECISO OZESSO C05000 OCESSO SINILO GELCO SEMED (1 PLEDD HOOKED TRESTO 960 661120 520520 956CO HOSED MICO ESSIVO OSO EPEGNO DEBESO 650 211190 91000 1690 209CEO I 061500 11911820LETO ISE910 GHSTO ILIETO 159LTO SOCCO 951950 ELSGEO OCENO POLO 95050 60LEO ESSC90 19000 10CELO PELES0 61 BOSCOD LEDED SONCED TO POCEO SSMIZO STO ORITED ELCHEO 69LEO 1910 6E950 LSC050 99ESSO COIvo LECCO CHCO 156180 02 PLEZO STO PATITO CISTO ALTO 9996TO 151920 916209 SED LESED SELESD 5650 LS 0STELO PINO T SC100195900 OLINDO ESTOLO OCIO QUESTO Steto SEO 999LTO LOOEEO OLLED CIOED PACEDO 1616PO SESSO ELEC90 S90 ESERCO * Proto o 1000 02600 165110 20910 SZT0 00LEZO ECCOCO DESSZO ELZEED ZISCED SECZNO SOLO GESECO (56090 126890 LLALLO 28 0.75684 065910 0.57437 050088 043708 038165 0.33348 0.29157 02550W 0.22333 0.19563 015040 011591 008955 0.00934 005383 0.04187 000607 29 074934 064936 0.56311 048866 042435 0.36875 032085 0.27902 024295 021168 015456 014056 0.10733 0,08215 006304 0.04849 0.03738 0.00500 30 0.74192 0.63976 655207 647674 0.41199 0.35628 0.30832 0.24700 0.25138 0.20064 8.37411 013137 809938 0.07537 0.05731 0.04368 31 073458 043031 054125 0.46311 639999 034423 029640 025550 022016 019018 016425 012277 009202 000915 0.05210 0.03935 002980 000351 40 067165 015126 045289 037243 630656 025257 020829 017193 0.14205 011746 009722 006678 004603 003184 0.02209 001538 001075 0.00068 TCP000 SESEO'S
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SOLUTION Solution Calculation Land A Building A 883 2000 Land B 76800 76800 883200 69800 Buil... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0078025839
9th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Posted Date:
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