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Sunland Corporation, a manufacturer of steel products, began operations on October 1, 2019. The accounting department of Sunland 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. 1. Depreciation is computed from the first of the month of acquisition to the first of the month of disposition. 2. Land A and Building A were acquired from a predecessor corporation. Sunland paid $816,000 for the land and building together. At the time of acquisition, the land had an appraised value of $94,900, and the building had an appraised value of $854,100. 3. Land B was acquired on October 2, 2019, in exchange for 2,500 newly issued shares of Sunland's common stock. At the date of acquisition, the stock had a par value of $5 per share and a fair value of $30 per share. During October 2019, Sunland paid $15,400 to demolish an existing building on this land so it could construct a new building. 4. Construction of Building B on the newly acquired land began on October 1, 2020. By September 30, 2021, Sunland had paid $338,600 of the estimated total construction costs of $417,000. It is estimated that the building will be completed and occupied by July 2022. 5. Certain equipment was donated to the corporation by a local university. An independent appraisal of the equipment when donated placed the fair value at $39,200 and the salvage value at $2,700. 6. Machinery A's total cost of $173,000 includes installation expense of $550 and normal repairs and maintenance of $14,800. Salvage value is estimated at $7,000. Machinery A was sold on February 1, 2021. 7. On October 1, 2020, 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, 2020. The prevailing interest rate was 8%. The following data were abstracted from present value tables (rounded). Present value of $1.00 at 8% Present value Present value of an ordinary of annuity due annuity of $1.00 at 8% of $1.00 at 8% 10 years 6.710 10 years 7.469 11 years 7.139 11 years 7.71 15 years 8.559 15 years 9.244 10 years 0.463 11 years 0.429 15 years 0.315 Complete the schedule below. (Round factor value to 3 decimal places, eg. 0.231 and final answers to 0 decimal places, e.g. 45,892.) SUNLAND CORPORATION Fixed-Asset and Depreciation Schedule For Fiscal Years Ended September 30, 2020, and September 30, 2021 Assets Acquisition Date Cost Salvage Depreciation Method Estimated Life in Years Land A October 1, 2019 (1) $ N/A N/A N/A Building A October 1, 2019 $40,600 Straight-line (3) Land B October 2, 2019 (5) N/A N/A N/A Building B Under Construction $338,600 to date Straight-line Donated Equipment October 2, 2019 2,700 150% declining-balance Machinery A October 2, 2019 (10) 7,000 Sum-of-the-years'-digits Machinery B October 1, 2020 (13) - Straight-line RATION ation Schedule 520, and September 30, 2021 Depreciation Expense Year Ended September 30 Estimated Life in Years 2020 2021 N/A N/A N/A $13,876 N/A N/A its

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