Question

I have asked for help regarding this problem over four times. Can someone please help with this question and provide the explanation for the correct answer. The incorrect answers are in bold. Thanks

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.)

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. Thompson paid $852,500 for the land and building together. At the time of acquisition, the land had a fair value of $94,000 and the building had a fair value of $846,000.
3. Land B was acquired on October 2, 2019, in exchange for 3,400 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 $29 per share. During October 2019, Thompson paid $10,800 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, 2020. By September 30, 2021, Thompson had paid $250,000 of the estimated total construction costs of $340,000. Estimated completion and occupancy are July 2022.
5. Certain equipment was donated to the corporation by the city. An independent appraisal of the equipment when donated placed the fair value at $17,600 and the residual value at $2,400.
6. Equipment A’s total cost of $111,000 includes installation charges of $590 and normal repairs and maintenance of $16,000. Residual value is estimated at $4,800. Equipment A was sold on February 1, 2021.
7. On October 1, 2020, Equipment B was acquired with a down payment of $4,400 and the remaining payments to be made in 10 annual installments of $4,400 each beginning October 1, 2021. The prevailing interest rate was 9%.

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

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 Assets Acquisition Date Cost Residual Depreciation Method Estimated Life in Years Depreciation for Year Ended 9/30 2020 2021 Land A 10/1/2019 $85,250selected answer correct N/A not applicable N/A N/A N/A Building A 10/1/2019 767,250selected answer correct $61,650 Straight-line 9selected answer incorrect $14,400 $0selected answer incorrect Land B 10/2/2019 98,000selected answer incorrect N/A not applicable N/A N/A N/A Building B Under construction 250,000 to date — Straight-line 30 — 0selected answer correct Donated Equipment 10/2/2019 17,600selected answer correct 2,400 200% Declining balance 10 2,640selected answer incorrect 2,244selected answer incorrect Equipment A 10/2/2019 95,000selected answer correct 4,800 Sum-of-the years’-digits 10 16,400selected answer correct 4,920selected answer correct Equipment B 10/1/2020 56,475selected answer incorrect — Straight-line 15 — 3,765selected answer incorrect

Answer 1

						Deprecaition for the year ended 9/30
Assets	Acquisition date	Cost	Residual	Depreciation method	Estimated Life in Years	2020	2021
Land A	oct 1 2019	$              85,250
Building A	oct 1 2019	$           7,67,250	$      61,650	Straight Line Method	49	$ 14,400.00	$ 14,400.00
Land B	Oct 2 2019	$              98,600	NA	Not Applicable	N.A	N.A	N.A
Building B	Under Construction	250000 to date	$               -	Straight Line Method	30	$               -	$               -
Donated Equipment	Oct 2 2019	$              17,600	$         2,400	200% Declining balance Method	10	$   3,520.00	$   2,816.00
Equipment A	Oct 2 2019	$              95,000	$         4,800	Sum of years Digit method	10	$ 16,400.00	$   4,920.00
Equipment B	Oct 1 2020	$              32,637	$               -	Straight Line Method	15	$               -	$   2,175.80
Workings-
Cost of Land A	=94000*852500/(94000+846000)
	=85250
Building A	=846000*852500/(94000+846000)
	= 767250
Cost of Equipment A	=(111000-16000)
	=95000
Cost of Equipment B
Interest rate	9%
Annual payment	4400
Period	10
Compounding period	10
Calculation Of Present value
Yr	Amount	P.v factor @9%	P.V
0	4400	1	4400
1	4400	0.917431193	4036.69725
2	4400	0.841679993	3703.39197
3	4400	0.77218348	3397.60731
4	4400	0.708425211	3117.07093
5	4400	0.649931386	2859.6981
6	4400	0.596267327	2623.57624
7	4400	0.547034245	2406.95068
8	4400	0.50186628	2208.21163
9	4400	0.46042778	2025.88223
10	4400	0.422410807	1858.60755
Total			32637.6939