Fixed asset and Depreciation Schedule

Current Attempt in Progress Blue Corporation, a manufacturer of steel products, began operations on October 1, 2019. The accounting department of Blue 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. 1. 2. 3. 4. Depreciation is computed from the first of the month of acquisition to the first of the month of disposition Land A and Building A were acquired from a predecessor corporation, Blue paid $818,000 for the land and building together. At the time of acquisition, the land had an appraised value of $92,700, and the building had an appraised value of $834,300. Land B was acquired on October 2, 2019, in exchange for 2,600 newly issued shares of lue's common stock. At the date of acquisition, the stock had a par value of $5 per share and a fair value of $29 per share. During October 2019, Blue paid $14,600 to demolish an existing building on this land so it could construct a new building Construction of Building B on the newly acquired land began on October 1, 2020. By September 30, 2021, Blue had paid $298,700 of the estimated total construction costs of $434,100. It is estimated that the building will be completed and occupied by July 2022 Certain equipment was donated to the corporation by a local university. An independent appraisal of the equipment when donated placed the fair value at $37,200 and the salvage value at $3,200. Machinery A's total cost of $197.700 includes installation expense of $540 and normal repairs and maintenance of $13,400. Salvage value is estimated at $6,100. Machinery A was sold on February 1, 2021. On October 1, 2020, Machinery B was acquired with a down payment of $5,880 and the remaining payments to be made in 11 annual installments of $6,140 each beginning October 1, 2020. The prevailing interest rate was 8%. The following data were abstracted from present value tables (rounded) 5. 6. 7. Present value of $1.00 at 8% Present value of an ordinary annuity of $1.00 at 8% Present value of annuity due of $1.00 at 8% 10 years 0.463 10 years 6.710 10 years 7.469 11 years 0.429 11 years 7.139 11 years 7.71 15 years 0.315 15 years 8.559 15 years 9.244 WE VERITATUE WOULIR PE 8. Walanannor answers to u decimal places, eg. 45,892) BLUE CORPORATION Fixed-Asset and Depreciations For Fiscal Years Ended September 30, 2020, an Assets Acquisition Date Cost Salvage Depreciation Method Land A October 1, 2019 (1) $ N/A NA (2) Building A October 1, 2019 $41.200 Straight-line Land B October 2, 2019 (5) N/A N/A Building B Under Construction $298,700 to date Straight-line Donated Equipment October 2, 2019 (7) 3,200 150% declining-balance Machinery A October 2, 2019 (10) 6,100 Sum-of-the-years-digits (13) Machinery B October 1, 2020 Straight-line e Textbook and Media Save for Later Attempts: unlimited Submit Answer BLUE CORPORATION Fixed-Asset and Depreciation Schedule For Fiscal Years Ended September 30, 2020, and September 30, 2021 Depreciation Expense Year Ended September 30 Salvage Depreciation Method Estimated Life in Years 2020 N/A N/A N/A N/A $41,200 Straight-line (3) $13.900 (4) N/A N/A N/A N/A Straight-line 30 (6) 3,200 150% declining-balance 10 (8) (9) ) ) 6,100 Sum-of-the-years-digits 8 (11) (12) Straight-line 20 (14) eTextbook and Media Safor Later Attematsunlimited Selena