ACC305WEEK5ASSGN - Complete P11-5 on page 608 The Thompson...

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Complete P11-5 on page 608 The Thompson Corporation, a manufacturer of steel products, began operation on October 1, 2009. 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. a. Depreciation is composed from the first of the month of acquisition to the first of the month of disposition. b. Land A and Building A were acquired from a predecessor corporation. Thompson paid $812,500 for the land and building together. At the time of acquisition, the land had a fair value of $72,000 and the building had a fair value of $828,000. c. Land B was acquired on October 2, 2009, in exchange for 3,000 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 $25 per share. During October 2009, Thompson paid $10,400 to demolish an existing building on this land so it could construct a new building.
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ACC305WEEK5ASSGN - Complete P11-5 on page 608 The Thompson...

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