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: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 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. Thompson paid $792,500 for the land and building together. At the time of acquisition, the land had a fair value of $70,400 and the building had a fair value of $809,600. Land B was acquired on October 2, 2019, in exchange for 2,800 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 $23 per share. During October 2019, Thompson paid $10,200 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, Thompson had paid $190,000 of the estimated total construction costs of $280,000. Estimated completion and occupancy are July 2022. Certain equipment was donated to the corporation by the city. An independent appraisal of the equipment when donated placed the fair value at $15,200 and the residual value at $1,800. Equipment A’s total cost of $116,000 includes installation charges of $550 and normal repairs and maintenance of $13,000. Residual value is estimated at $5,800. Equipment A was sold on February 1, 2021. On October 1, 2020, Equipment B was acquired with a down payment of $4,000 and the remaining payments to be made in 10 annual installments of $4,000 each beginning October 1, 2021. The prevailing interest rate was 7%. I ONLY NEED HELP ON THE FEW WITH A RED X PLEASE

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: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 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. Thompson paid $792,500 for the land and building together. At the time of acquisition, the land had a fair value of $70,400 and the building had a fair value of $809,600. Land B was acquired on October 2, 2019, in exchange for 2,800 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 $23 per share. During October 2019, Thompson paid $10,200 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, Thompson had paid $190,000 of the estimated total construction costs of $280,000. Estimated completion and occupancy are July 2022. Certain equipment was donated to the corporation by the city. An independent appraisal of the equipment when donated placed the fair value at $15,200 and the residual value at $1,800. Equipment A’s total cost of $116,000 includes installation charges of $550 and normal repairs and maintenance of $13,000. Residual value is estimated at $5,800. Equipment A was sold on February 1, 2021. On October 1, 2020, Equipment B was acquired with a down payment of $4,000 and the remaining payments to be made in 10 annual installments of $4,000 each beginning October 1, 2021. The prevailing interest rate was 7%. I ONLY NEED HELP ON THE FEW WITH A RED X PLEASE

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 3RE: Albany Corporation purchased equipment at the beginning of Year 1 for 75,000. The asset does not...

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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. Thompson paid $792,500 for the land and building together. At the time of acquisition, the land had a fair value of $70,400 and the building had a fair value of $809,600.
Land B was acquired on October 2, 2019, in exchange for 2,800 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 $23 per share. During October 2019, Thompson paid $10,200 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, Thompson had paid $190,000 of the estimated total construction costs of $280,000. Estimated completion and occupancy are July 2022.
Certain equipment was donated to the corporation by the city. An independent appraisal of the equipment when donated placed the fair value at $15,200 and the residual value at $1,800.
Equipment A’s total cost of $116,000 includes installation charges of $550 and normal repairs and maintenance of $13,000. Residual value is estimated at $5,800. Equipment A was sold on February 1, 2021.
On October 1, 2020, Equipment B was acquired with a down payment of $4,000 and the remaining payments to be made in 10 annual installments of $4,000 each beginning October 1, 2021. The prevailing interest rate was 7%.

I ONLY NEED HELP ON THE FEW WITH A RED X PLEASE

Requlred:
Supply the correct amount for each answer box on the schedule. (Round your Intermediate calculatlons and final answers to the
nearest whole dollar.)
X Answer is complete but not entirely correct.
THOMPSON CORPORATION
Fixed Asset and Depreciation Schedule
For Fiscal Years Ended September 30, 2020, and September 30, 2021
Depreciation for
Year Ended 9/30
Estimated
Acquisition
Date
Depreciation
Method
Assets
Cost
Residual
Life in
Years
2020
2021
63,400 O
729,100 O s 57,100
Land A
10/1/2019
IS
N/A
not applicable
N/A
N/A
N/A
Building A
10/1/2019
Straight-line
48
14,000
14,000 O
Land B
10/2/2019
N/A
not applicable
N/A
N/A
N/A
Building B
Under construction
190,000 to date
Straight-line
30
-
Donated Equipment
10/2/2019
15,200 O
1,800
200% Declining balance
10
3,040 O
2,432
Equipment A
10/2/2019
103,000
O
5,800
Sum-of-the years'-digits
8
21,600 O
6,300
Equipment B
10/1/2020
30,061
Straight-line
15

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Depreciation represents how much of an asset's value has been used .

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