Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Accounting Basics Expert

Comprehensive Depreciation Computations Kohl beck Corporation, a manufacturer of steel products, began operations on October 1, 2009. The accounting department of Kohl beck has started the fixed-asset and depreciation schedule presented on page 581. 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. 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. Kohl beck paid $800,000 for the land and building together. At the time of acquisition, the land had an appraised value of $90,000, and the building had an appraised value of $810,000.

3. Land B was acquired on October 2, 2009, in exchange for 2,500 newly issued shares of Kohl beck's common stock. At the date of acquisition, the stock had a par value of $5 per share and a fair value of $30 per share. During October 2009, Kohl beck paid $16,000 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, 2010. By September 30, 2011, Kohl beck had paid $320,000 of the estimated total construction costs of $450,000. It is estimated that the building will be completed and occupied by July 2012.

5. Certain equipment was donated to the corporation by a local university. An independent appraisal of the equipment when donated placed the fair market 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 February 1, 2011.

7. On October 1, 2010, 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 October 1, 2010. The prevailing interest rate was 8%.

The following data were abstracted from present-value tables (rounded). 

Present value of $1.00 at 8% Present value of an ordinary annuity of $1.00 at 8%

10 years .463 10 years 6.710
11 years .429 11 years 7.139
15 years .315 15 years 8.559

For each numbered item on the schedule above, supply the correct amount. Round each answer to the nearestdollar

50_11-B-A-D-I-D (80).PNG

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91878426
  • Price:- $10

Priced at Now at $10, Verified Solution

Have any Question?


Related Questions in Accounting Basics

Question - if you earned an income of 36500 in wages and

Question - If you earned an income of $36,500 in wages and other contractual income of $42,600 working under your own ABN, making a net profit of $38,500, what would be your total assessable income?

Question a firm has consistently adjusted its allowance

Question: A firm has consistently adjusted its allowance account at the end of the fiscal year by adding a fixed percent of the period's sales on account. After seven years, the balance in Allowance for Doubtful Accounts ...

Question - tribune manufacturing purchased a machine for 60

Question - Tribune Manufacturing purchased a machine for $60 000 on 1 January 2015 which is expected to have a 5 year useful life, no residual value, and to produce a total of 20 000 gadgets before it is scrapped. Assumi ...

Question - on april 1 2019 austin corporation issued 300000

Question - On April 1, 2019, Austin Corporation issued $300,000 of 10% bonds at 105. Each $1,000 bond was sold with 25 detachable stock warrants, each permitting the investor to purchase one share of common stock for $17 ...

Question - 1 paid 20000 cash to purchase equipment costing

Question - 1. Paid $20,000 cash to purchase equipment costing $80,000. The remaining amount was recognized as a one year note payable with interest rate of 9%. 2. A major dental machine in our office is broken beyond rep ...

Question - x company manufactures a single product product

Question - X Company manufactures a single product, Product A, and budgets total manufacturing costs each month. The accountant provides the following information about its manufacturing process: Direct material quantity ...

Question task 1 on dec 31 2015 paula peter and phil started

Question: Task 1: On Dec 31, 2015 Paula, Peter and Phil started the 3p.com company. The idea is to buy a newly developed easily useable heart monitor device and resell it to elderly private patients. The device is called ...

Question -a jalisco inc net credit sales of 75000 and

Question - A) Jalisco Inc. net credit sales of $75,000 and estimates that bad debts are approximately 3% of net credit sales. The yearend balance in accounts receivable is $200,000 and $2,000 of accounts receivable were ...

Question faith essay instructionsyou will write an 800-word

Question: Faith Essay Instructions You will write an 800-word essay in current APA format that focuses on how biblical concepts are related to the fields of accounting and finance. The essay must incorporate a thoughtful ...

Question - flounder corporation sold 3490000 7 5-year bonds

Question - Flounder Corporation sold $3,490,000, 7%, 5-year bonds on January 1, 2017. The bonds were dated January 1, 2017, and pay interest on January 1. Flounder Corporation uses the straight-line method to amortize bo ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As