Question

please type your answer, answer all parts and provide a brief explination and show ALL work

please do 5-7

Problem 3 (15%)

Cranston Corporation, a manufacturer of steel products, began operations on 10/1/16. The accounting department of Cranston has started the fixed-asset and depreciation schedule presented. 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.

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 $40,000 and the salvage value at $3,000.

6.   Machinery A's total cost of $182,900 includes installation expense of $600 and normal repairs and maintenance of $14,900. Salvage value is estimated at $6,000. Machinery A was sold on 2/1/18.

7.   On 10/1/17, Machinery B was acquired with a down payment of $5,740 and the remaining payments to be made in 11 annual installments of $6,000 each beginning 10/1/17. The prevailing interest rate was 8%.

CRANSTON CORPORATION

Fixed-Asset and Depreciation Schedule

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

Depreciation Expense Year Ended September 30

Assets

Acquisition Date

Cost

Salvage

Depreciation Method

Estimated Life in Years

2017

2018

Land A

10/1/16

$ (1)

N/A*

N/A

N/A

N/A

N/A

Building A

10/1/16

(2)

$40,000

Straight-line

(3)

$13,600

(4)

Land B

10/2/16

(5)

N/A

N/A

N/A

N/A

N/A

Building B

Under Construction

$320,000 to date

—

Straight-line

30

—

(6)

Donated Equipment

10/2/16

(7)

3,000

150% declining-balance

10

(8)

(9)

Machinery A

10/2/16

(10)

6,000

Sum-of-the- years'-digits

8

(11)

(12)

Machinery B

10/1/17

(13)

—

Straight-line

20

—

(14)

Required:

For each numbered item on the schedule above, supply the correct amount. (Round each answer to the nearest dollar.)

邨 Word File Edit View Insert Format Font Tools Table Window Help すFinal Problems.docx 11 E-1.匡喦 100%ー. @ Search in Document vin Home Layout Document Elements Tables Table Layout Charts SmartArt Review Bookmarks AaBbCcDdE aBbCcDdEe | BI U İnie A A G dian ミ, İ İ, No Spacing Normal Text Box Shape Pi icture Themes 5 Certain equpment was donated to the corporation by a local university, An independent appraisal of he equipment when donated placod the fair valuo at S40,000 and the salvago valuo at $3,000. 6. Machinery A's total coet of $182,900 includes instalation expense of $600 and normal repairs and pa d maintenance of $14,900. Salvage value is estimated at $6,000. Machinery A was soid on 2/1/18. 7. On 10/117, Machinery B was acquired with a down payment of $5,740 and the remaining payments to ba mada in 11 annual installments of $8,000 each beginning 10/1/17. The provailing intorost rato was CRANSTON CORPORATION Fixed-Asset and Depreciation Schedule For Fiscal Years Ended September 30, 2017, and September 30, 2018 Depreciation Expense Year Ended September 30 2017 Assets Acquisition Cost Salvage Depreciation Estimated 2018 Life in Years S) NIANA NA NA NIA Land A 10/1/16 $() uidingA 10nn6 (2) 540.000 Streigh-lre 14) NIA file dr Land B10216 5 NA NIA Buiding BUnder $320,000 Straight-line 30 Donated 10/216 Construction to date (7) 3,000 150% 10 back Machnery 10216 (i0),000 Sum-otfie yoars'-digts Straight-line (14) lcase For each numbered item on the schedule above, supply the correct amount. (Round each answer to the neareet dolar.) Print Layout View dragon Sec 1 Pages: 2 a1 3

Answer 1