Blossom Corporation, a manufacturer of steel products, began operations on October 1, 2024. The accounting department of Blossom has started the fixed-asset and depreciation schedule presented as follows. 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 2. 3. 4. 5. 6. 7. Depreciation is computed from the first of the month of acquisition to the first of the month of disposition. Land A and Building A were acquired from a predecessor corporation. Blossom paid $799,000 for the land and building together. At the time of acquisition, the land had an appraised value of $94,400, and the building had an appraised value of $849.600. Land B was acquired on October 2, 2024, in exchange for 2,400 newly issued shares of Blossom's common stock. At the date of acquisition, the stock had a par value of $5 per share and a fair value of $32 per share. During October 2024, Blossom paid $17.100 to demolish an existing building on this land so it could construct a new building. Construction of Building B on the newly acquired land began on October 1, 2025. By September 30, 2026, Blossom had paid $348,200 of the estimated total construction costs of $442,900. It is estimated that the building will be completed and occupied by July 2027. Certain equipment was donated to the corporation by a local university. An independent appraisal of the equipment when donated placed the fair value at $42,400 and the salvage value at $3,000. Machinery A's total cost of $174,300 includes installation expense of $650 and normal repairs and maintenance of $16,300. Salvage value is estimated at $6,800. Machinery A was sold on February 1, 2026. On October 1, 2025, Machinery B was acquired with a down payment of $6,500 and the remaining payments to be made in 11 annual installments of $6,760 each beginning October 1, 2025. The prevailing interest rate was 8%. The following data were abstracted from present value tables (rounded). Present Value Present Value of an Ordinary Annuity of $1.00 at 8% of $1.00 at 8% 10 years 0.463 10 years 6.710 11 years 0.429 11 years 7.139 15 years 0.315 15 years 8.559 Complete the schedule below. (Round factor value to 3 decimal places, e.g. 0.231 and final answers to O decimal places, e.g. 45,892.) BLOSSOM CORPORATI Fixed-Asset and Depreciation For Fiscal Years Ended September 30, 2025, Assets Acquisition Date Cost Salvage Depreciation Method Land A October 1, 2024 $ (1) N/A N/A (2) Building A October 1, 2024 $37,700 Straight-line Land B (5) October 2, 2024 N/A N/A Building B Under Construction $348,200 to date Straight-line (7) Donated Equipment October 2, 2024 3,000 150% declining-balance Machinery A October 2, 2024 ྴཀྱི (10) 6,800 Machinery B (13) October 1, 2025 Sum-of-the-years'-digits Straight-line

Blossom Corporation, a manufacturer of steel products, began operations on October 1, 2024. The accounting department of Blossom has started the fixed-asset and depreciation schedule presented as follows. 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 2. 3. 4. 5. 6. 7. Depreciation is computed from the first of the month of acquisition to the first of the month of disposition. Land A and Building A were acquired from a predecessor corporation. Blossom paid $799,000 for the land and building together. At the time of acquisition, the land had an appraised value of $94,400, and the building had an appraised value of $849.600. Land B was acquired on October 2, 2024, in exchange for 2,400 newly issued shares of Blossom's common stock. At the date of acquisition, the stock had a par value of $5 per share and a fair value of $32 per share. During October 2024, Blossom paid $17.100 to demolish an existing building on this land so it could construct a new building. Construction of Building B on the newly acquired land began on October 1, 2025. By September 30, 2026, Blossom had paid $348,200 of the estimated total construction costs of $442,900. It is estimated that the building will be completed and occupied by July 2027. Certain equipment was donated to the corporation by a local university. An independent appraisal of the equipment when donated placed the fair value at $42,400 and the salvage value at $3,000. Machinery A's total cost of $174,300 includes installation expense of $650 and normal repairs and maintenance of $16,300. Salvage value is estimated at $6,800. Machinery A was sold on February 1, 2026. On October 1, 2025, Machinery B was acquired with a down payment of $6,500 and the remaining payments to be made in 11 annual installments of $6,760 each beginning October 1, 2025. The prevailing interest rate was 8%. The following data were abstracted from present value tables (rounded). Present Value Present Value of an Ordinary Annuity of $1.00 at 8% of $1.00 at 8% 10 years 0.463 10 years 6.710 11 years 0.429 11 years 7.139 15 years 0.315 15 years 8.559 Complete the schedule below. (Round factor value to 3 decimal places, e.g. 0.231 and final answers to O decimal places, e.g. 45,892.) BLOSSOM CORPORATI Fixed-Asset and Depreciation For Fiscal Years Ended September 30, 2025, Assets Acquisition Date Cost Salvage Depreciation Method Land A October 1, 2024 $ (1) N/A N/A (2) Building A October 1, 2024 $37,700 Straight-line Land B (5) October 2, 2024 N/A N/A Building B Under Construction $348,200 to date Straight-line (7) Donated Equipment October 2, 2024 3,000 150% declining-balance Machinery A October 2, 2024 ྴཀྱི (10) 6,800 Machinery B (13) October 1, 2025 Sum-of-the-years'-digits Straight-line

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 4C

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