Logan Corporation, a manufacturer of steel products, began opera

Logan Corporation, a manufacturer of steel products, began operations on October 1, 2006. The accounting department of Logan has started the fixed asset and depreciation schedule shown as follows:

Logan Corporation, a manufacturer of steel products, began opera

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 corporation. Logan paid $812,500 for the land and building together. At the time of acquisition, the land had an appraised value of $72,000 and the building had an appraised value of $828,000.
3. Land B was acquired on October 3, 2006 in exchange for 3,000 newly issued shares of Logan€™s common stock. At the date of acquisition, the stock had a par value of $5 per share and a fair value of $25 per share. During October 2006, Logan paid $10,400 to demolish an existing building on this land so that it could construct a new building.
4. Construction of building B on the newly acquired land began on October 2, 2007. By September 30, 2008 Logan had paid $210,000 of the estimated total construction costs of $300,000. Estimated completion and occupancy are July 2009.
5. Certain equipment was donated to the corporation by a local university. An independent appraisal of the equipment when donated placed the fair value at $16,000 and the salvage at $2,000.
6. Machinery A€™s total cost of $110,000 includes installation expense of $550 and normal repairs and maintenance of $11,000. Salvage value is estimated at $5,500. Machinery A was sold on February 1, 2008.
7. On October 1, 2007, machinery B was acquired with a down payment of $4,000 and the remaining payments to be made in ten annual installments of $4,000 each beginning October 1, 2008. The prevailing interest rate was 10%. The data that follow were abstracted from present value tables:

Logan Corporation, a manufacturer of steel products, began opera

Required
For each numbered item in the schedule, supply the correct amount next to the corresponding number. Round each answer to the nearest dollar. Show supporting computations in goodform.

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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,...