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Can anyone solve this question pls? On January 1, Mitzu Company pays a lump-sum amount of $2,700,000 for land, Building 1, Building 2, and Land
Can anyone solve this question pls?
On January 1, Mitzu Company pays a lump-sum amount of $2,700,000 for land, Building 1, Building 2, and Land improvements 1. Building 1 has no value and will be demolished. Building 2 will be an office and is appraised at $750,000, with a useful life of 20 years and a $75,000 salvage value. Land Improvements 1 is valued at $450,000 and is expected to last another 15 years with no salvage value. The land is valued at $1,800,000. The company also incurs the following additional costs. Coat to demolish Building 1 Cost to conatruct Building 3, having a useful life of 25 yeara and a $400,000 isalvage value Cost of new tand Tmprovements 2, having a 20 -year useful 1 ife and no malvage value cost of additional. 1and grading Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column. Journal entry worksheet Record the cost of the plant assets, paid in cash. Note: Enter debits before credits. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets were n use. Journal entry worksheet Record the year-end adfusting entry for the depreciation expense of Building 2. Notei Enter debits beforn enedite. Journal entry worksheet Record the year-end adjusting entry for the depreciation expense of Building 3. Note: Enter debits before credits. Journal entry worksheet Record the year-end adjusting entry for the depreciation expense of Land Improvements 1. Note: Enter debits before credits. Journal entry worksheet 1 Record the year-end adjusting entry for the depreciation expense of Land Improvements 2. Note: Enter debits before credits Step by Step Solution
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