Final answer:
The Thompson Corporation asset and depreciation schedule involves several calculations involving fair value, share exchange, interest rates, and cost allocation, as well as depreciation that must be computed over the life of the assets.
Step-by-step explanation:
The question requires the calculation of various figures related to assets accounting, including acquisition cost, depreciation, and interest on financed purchases. Considering the information provided:
Land A and Building A were acquired for a total cost of $812,500. Since the land had a fair value of $72,000, and the building had a fair value of $828,000, the cost allocated to the land and building would be based on their respective fair values at acquisition.
Land B was acquired through exchange for shares. The fair value of shares given was 3,000 shares × $25 per share = $75,000. The demolition costs of $10,400 should be added to the land's cost.
For Building B, payments of $210,000 toward the total cost of $300,000 had been made as of September 30, 2024.
The equipment donated by the city had a fair value of $16,000 and this would be the recognized cost of the equipment.
Equipment A's cost of $110,000 excludes repair and maintenance costs but includes installation charges of $550.
Equipment B was purchased with a present value calculation using the 8% interest rate for the 10 annual payments of $4,000 each. Ignore the down payment for this calculation.
Depreciation Computation
Fixed assets are depreciated over their useful life. Depreciation for buildings and equipment would typically be calculated using methods such as straight-line, double-declining balance, or units of production, depending on company policy. Residual value, like the $9,000 for Equipment A, is considered in calculating depreciation expense.