g. On October 1, 2023, Equipment B was acquired with a down payment of $4,000 and the remaining payments to be made in 10 annual installments of $4,000 each beginning October 1, 2024. The prevailing interest rate was 8%. Required: Supply the correct amount for each answer box on the schedule. Note: Round your intermediate calculations and final answers to the nearest whole dollar. THOMPSON CORPORATION Fixed Asset and Depreciation Schedule For Fiscal Years Ended September 30, 2023, and September 30, 2024 Assets Acquisition Date Cost Residual Depreciation Method Estimated Life in Years Depreciation for Year Ended 9/30 2023 2024 Land A 10/1/2022 $ 65,000 N/A not applicable N/A N/A N/A Building A 10/1/2022 Land B 10/2/2022 Building B Under construction Donated Equipment 10/2/2022 747,500 $47,500 85,400 210,000 to date 16,000 Straight-line 50 $ 14,000 $14,000 N/A not applicable N/A N/A N/A - Straight-line 30 0 Equipment A 10/2/2022 99,000 2,000 9,000 200% Declining balance 10 3,200 2,560 Straight-line 10 9,000 3,000 Equipment B 10/1/2023 Straight-line 15

g. On October 1, 2023, Equipment B was acquired with a down payment of $4,000 and the remaining payments to be made in 10 annual installments of $4,000 each beginning October 1, 2024. The prevailing interest rate was 8%. Required: Supply the correct amount for each answer box on the schedule. Note: Round your intermediate calculations and final answers to the nearest whole dollar. THOMPSON CORPORATION Fixed Asset and Depreciation Schedule For Fiscal Years Ended September 30, 2023, and September 30, 2024 Assets Acquisition Date Cost Residual Depreciation Method Estimated Life in Years Depreciation for Year Ended 9/30 2023 2024 Land A 10/1/2022 $ 65,000 N/A not applicable N/A N/A N/A Building A 10/1/2022 Land B 10/2/2022 Building B Under construction Donated Equipment 10/2/2022 747,500 $47,500 85,400 210,000 to date 16,000 Straight-line 50 $ 14,000 $14,000 N/A not applicable N/A N/A N/A - Straight-line 30 0 Equipment A 10/2/2022 99,000 2,000 9,000 200% Declining balance 10 3,200 2,560 Straight-line 10 9,000 3,000 Equipment B 10/1/2023 Straight-line 15

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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NovakFurniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $14,000,000 on January 1, 2020. Novak expected to complete the building by December 31, 2020. Novak has the following debt obligations outstanding during the construction period. Construction loan-12% interest, payable semiannually, issued December 31, 2019 $5,600,000 Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2021 4,200,000 Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2024 2,800,000 Assume that Novak completed the office and warehouse building on December 31, 2020, as planned at a total cost of $14,560,000, and the weighted-average amount of accumulated expenditures was $10,080,000. Compute the avoidable interest on this project. (Use interest rates rounded to 2 decimal places, e.g. 7.58% for computational purposes and round final answers…
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Please solve the question ASAP.
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