Kohlbeck Corporation, a manufacturer of steel products, began operations on October 1, 2018. The accounting department of

Question:

Kohlbeck Corporation, a manufacturer of steel products, began operations on October 1, 2018. The accounting department of Kohlbeck has started the plant asset and depreciation schedule (presented after the following information). 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.
1. Depreciation is computed from the first of the month of acquisition to the first of the month of disposition.
2. Land A and Building A were acquired from a predecessor company. Kohlbeck paid $800,000 for the land and building together. 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, 2018, in exchange for 2,500 newly issued shares of Kohlbeck's ordinary shares. At the date of acquisition, the shares had a of $5 per share and a fair value of $30 per share. During October 2018, Kohlbeck paid $16,000 to demolish an existing building on this land so it could construct a new building.
4. Construction of Building B on the newly acquired land began on October 1, 2019. By September 30, 2020, Kohlbeck had paid $320,000 of the estimated total construction costs of $450,000. It is estimated that the building will be completed and occupied by July 2021.
5. A grant for certain equipment was given to the company by the local community. An independent appraisal of the equipment when granted placed the fair value at $40,000 and the residual value at $3,000. The grant is recorded as deferred grant revenue.
6. Machinery A's total cost of $182,900 includes installation expense of $600 and normal repairs and maintenance of $14,900. Residual value is estimated at $6,000. Machinery A was sold on February 1, 2020.
7. On October 1, 2019, Machinery B was acquired with a down payment of $5,740 and the remaining payments to be made in 11 annual installments of $6,000 each beginning October 1, 2019. The prevailing interest rate was 8%. The following data were abstracted from present value tables (rounded).

Present value of $1.00 at 8% Present value of an ordinary annuity of $1.00 at 8% 10 years 11 years 15 years 10 years .46

Kohlbeck Corporation Plant Asset and Depreciation Schedule For Fiscal Years Ended September 30, 2019, and September 30,

Instructions
For each numbered item on the schedule above, supply the correct amount. (Round each answer to the nearest dollar.)

Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...