Question

Sung Corporation, a manufacturer of steel products, began operations on October 1, 2013. Sung’s accounting department has begun preparing the capital asset and depreciation schedule that follows. You have been asked to assist in completing this schedule. In addition to determining that the data already on the schedule are correct, you have obtained the following information from the company's records and personnel:
1. Depreciation is calculated from the first day of the month of acquisition to the first day of the month of disposition.
2. Land A and Building A were acquired together for $820,000. At the time of acquisition, the land had an appraised value of $90,000 and the building had an appraised value of $810,000.
3. Land B was acquired on October 2, 2013, in exchange for 2,500 newly issued common shares. At the date of acquisition, the shares had a fair value of $30 each. During October 2013, Sung paid $16,000 to demolish an existing building on this land so that it could construct a new building
4. Construction of Building Bon the newly acquired land began on October 1, 2014. By September 30, 2015, Sung had paid 5320,000 of the estimated total construction costs of $450,000. It is estimated that the building will be completed and occupied by July 2016.
5. Certain equipment was donated to the corporation by a local university. An independent appraisal of the equipment when it was donated estimated its fair value at $30,000 and the residual value at $3,000.
6. Machine & total cost of $164,900 includes an installation expense of $600 and normal repairs and maintenance of $14,900. Its residual value is estimated at $6,000. Machine A was sold on February 1, 2015.
7. On October 1, 2014, Machine B was acquired with a down payment of $5,740 and the remaining payments to be made in 11 annual instalments of $6,000 each, beginning October 1, 2014. The prevailing interest rate was 8%. The following data were determined from present-value tables and are rounded:.
N/A = Not applicable
Instructions
For each numbered item in the schedule, give the correct amount. Round each answer to the nearest dollar.


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  • CreatedSeptember 18, 2015
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