The Thompson Corporation, a manufacturer of steel products, began operations on October 1, 2016. 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 $812,500 for the land and building together. At the time of acquisition, the land had a fair value of $72,000 and the building had a fair value of $828,000.

Land B was acquired on October 2, 2016, in exchange for 3,000 newly issued shares of Thompsonâs 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 2016, Thompson paid $10,400 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, 2017. By September 30, 2018, Thompson had paid $210,000 of the estimated total construction costs of $300,000. Estimated completion and occupancy are July 2019.

Certain equipment was donated to the corporation by the city. An independent appraisal of the equipment when donated placed the fair value at $16,000 and the residual value at $2,000.

Machine Aâs total cost of $110,000 includes installation charges of $550 and normal repairs and maintenance of $11,000. Residual value is estimated at $5,500. Machine A was sold on February 1, 2018.

On October 1, 2017, Machine 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, 2018. The prevailing interest rate was 8%.

Required:
Supply the correct amount for each answer box on the schedule. (Round your final answer to nearest whole dollar.)

THOMPSON CORPORATION

Fixed Asset and Depreciation Schedule

For Fiscal Years Ended September 30, 2017, and September 30, 2018

Assets Acquisition Date Cost Residual Depreciation Method Estimated Life in Years Depreciation for Year Ended 9/30

2017 2018

Land A 10/1/16 N/A N/A N/A N/A N/A

Building A 10/1/16 $47,500 SL $14,000

Land B 10/2/16 N/A N/A N/A N/A N/A

Building B Under construction 210,000 to date â SL 30 â

Donated Equipment 10/2/16 2,000 150% Declining balance 10

Machine A 10/2/16 5,500 Sum-of-the yearsâ-digits 10

Machine B 10/1/17 â SL 15 â

Question

The Thompson Corporation, a manufacturer of steel products, began operations on October 1, 2016. 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 $812,500 for the land and building together. At the time of acquisition, the land had a fair value of $72,000 and the building had a fair value of $828,000.

Land B was acquired on October 2, 2016, in exchange for 3,000 newly issued shares of Thompsonâs 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 2016, Thompson paid $10,400 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, 2017. By September 30, 2018, Thompson had paid $210,000 of the estimated total construction costs of $300,000. Estimated completion and occupancy are July 2019.

Certain equipment was donated to the corporation by the city. An independent appraisal of the equipment when donated placed the fair value at $16,000 and the residual value at $2,000.

Machine Aâs total cost of $110,000 includes installation charges of $550 and normal repairs and maintenance of $11,000. Residual value is estimated at $5,500. Machine A was sold on February 1, 2018.

On October 1, 2017, Machine 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, 2018. The prevailing interest rate was 8%.

Required:
Supply the correct amount for each answer box on the schedule. (Round your final answer to nearest whole dollar.)

THOMPSON CORPORATION

Fixed Asset and Depreciation Schedule

For Fiscal Years Ended September 30, 2017, and September 30, 2018

Assets

Acquisition Date

Cost

Residual

Depreciation Method

Estimated Life in Years

Depreciation for Year Ended 9/30

2017

2018

Land A

10/1/16

N/A

Building A

10/1/16

$47,500

SL

$14,000

Land B

10/2/16

N/A

Building B

Under construction

210,000 to date

â

SL

30

â

Donated Equipment

10/2/16

2,000

150% Declining balance

10

Machine A

10/2/16

5,500

Sum-of-the yearsâ-digits

10

Machine B

10/1/17

â

SL

15

â

a.	Depreciation is computed fromthe first of the month of acquisition to the first of the month ofdisposition.
b.	Land A and Building A were acquired from a predecessorcorporation. Thompson paid $892,500 for the land and buildingtogether. At the time of acquisition, the land had a fair value of$117,600 and the building had a fair value of $862,400.
c.	Land B was acquired on October 2, 2011, in exchange for 3,800newly issued shares of Thompson

Category	Plant Asset		Accumulated Depreciation and Amortization
Land	$	178,000	$	â
Buildings		1,650,000		331,900
Machinery andequipment		1,275,000		320,500
Automobiles andtrucks		175,000		103,325
Leaseholdimprovements		222,000		111,000
Landimprovements		â		â

a.	On January 6, 2016, a plant facility consisting of land andbuilding was acquired from King Corp. in exchange for 28,000 sharesof Cord's common stock. On this date, Cord's stock had a fair valueof $50 a share. Current assessed values of land and building forproperty tax purposes are $195,000 and $585,000, respectively.
b.	On March 25, 2016, new parking lots, streets, and sidewalks atthe acquired plant facility were completed at a total cost of$210,000. These expenditures had an estimated useful life of 12years.
c.	The leasehold improvements were completed on December 31, 2012,and had an estimated useful life of eight years. The related lease,which would terminate on December 31, 2018, was renewable for anadditional four-year term. On April 29, 2016, Cord exercised therenewal option.
d.	On July 1, 2016, machinery and equipment were purchased at atotal invoice cost of $328,000. Additional costs of $10,000 fordelivery and $53,000 for installation were incurred.
e.	On August 30, 2016,Cord purchased a new automobile for $12,800.
f.	On September 30, 2016, a truck with a cost of $24,300 and a bookvalue of $9,600 on date of sale was sold for $11,800. Depreciationfor the nine months ended September 30, 2016, was $2,160.
g.	On December 20, 2016, a machine with a cost of $18,500 and abook value of $3,050 at date of disposition was scrapped withoutcash recovery.

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