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that it has not USU L LE . LUGE u Groupwork (Comprehensive Depreciation Computations) Kohlbeck Corpora- facturer of steel products, began operations on October 1, 2019. The accounting depart- Wheck has started the fixed asset and depreciation schedule presented as follows. PIL.10 (LO 1) Group ban, a manufacturer ment of Kohlbeck hes Kohlbeck Corporation Fixed-Asset and Depreciation Schedule For Fiscal Years Ended September 30, 2020, and September 30, 2021 Assets Acquisition Date October 1, 2019 Land A Building A October 1, 2019 Land B October 2, 2019 Building B Under Construction Donated Equipment October 2, 2019 Cost $ (1) (2) (5) $320,000 to date (7) Salvage N/A $40,000 N/A - Depreciation Method N/A Straight-line N/A Straight-line Depreciation Expense Year Ended September 30 2020 2021 N/A N/A $13,600 (4) N/A N/A (6) Estimated Life in Life in Years N/A (3) N/A 30 10 (8) (11) (9) (12) Machinery A 3,000 150% declining- balance 6,000 Sum-of-the- years'-digits - Straight-line October 2, 2019 (10) 8 Machinery B October 1, 2020 (13) 20 - (14) "N/A-Not applicable 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 dis- position - Land A and Building A were acquired from a predecessor corporation Kohlbeck paid $800,000 or the land and building together. At the time of acquisition, the land had an appraised value of 390,000, and the building had an appraised value of $810,000. and B was acquired on October 2, 2019, in exchange for 2,500 newly issued shares of Kohlbeck's common stock. At the date of acquisition, the stock had a p 50 per share. During October 2019, Kohlbeck paid $16.000 to demolish an existing building on this land so it could construct a new building. ruction of Building B on the newly acquired land began on October 1, 2020. By September 30, Kohlbeck had paid $320,000 of the estimated total construction costs of $450,000. It is estimated hat the building will be completed and occupied by July 2022. Depreciation, impairments, and Depletion 5. Certain equipment was donated to the corporation by a local university. An independe of the equipment when donated placed the fair value at $40,000 and the salvage value a 6. Machinery A's total cost of $182 900 includes installation expense of $600 and normal maintenance of $14,900. Salvage value is estimated at $6,000. Machinery A was sold on 2021. dependent appraisal value at $3,000. mal repairs and Id on February 1, 7. On October 1, 2020, Machinery B was acquired with a down payment of $5,740 and there payments to be made in 11 annual installments of $6,000 each beginning October 1, 2020. vailing interest rate was 8%. The following data were abstracted from present value tables (rou the remaining 2020. The pre 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 Instructions For each numbered item on the schedule, supply the correct amount. (Round each answer to the nearest dollar) DOS

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