Che (The following information applies to the questions displayed below. On January 1, Mitzu Co. pays a lump-sum amount of $2,650,000 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 $630,000, with a useful life of 20 years and a $75,000 salvage value. Land Improvements 1 is valued at $540,000 and is expected to last another 18 years with no salvage value. The land is valued at $1,830,000. The company also incurs the following additional costs. $ 343,400 191,400 Cost to demolish Building 1 Cost of additional land grading Cost to construct Building 3, having a useful life of 25 years and a $398,000 salvage value Cost of new Land Improvements 2 having a 20-year useful life and no salvage value 2,282,000 173,000 Problem 8-3A Part 1 lequired: Allocate the costs incurred by Mitzu to the appropriate columns and total each column. 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column. Percent of Total Appraised Value Appraised Value Total cost of Allocation of purchase price =Apportioned Cost X acquisition Land Building 2 Land Improvements 1 X Totals $ $ 0% Land Land Land Building 2 Building 3 Improvements 1 Improvements 2 Purchase Price Demolition Land grading New building (Construction cost) New improvements Totals $ 0 $ 0 2. Prepare a sing le journal entry to record all the incurred costs assuming they are paid in cash on January 1 View transaction list Journal entry works heet > Record the cost of the plant assets, paid in cash. Note: Enter debits before credits Credit Debit General Journal Date Jan 01 es View general journal Clear entry Record entry 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets were in use. View transaction list X > Record the year-end adjusting entry for the depreciation expense of Building 2. 1 Record the year-end adjusting entry for the depreciation expense of 2 Building 3. Record the year-end adjusting entry for the depreciation expense of Land Improvements 1. 3 Credit Record the year-end adjusting entry for the depreciation expense of 4 Land Improvements 2. Note = journal entry has been entered View general journal Clear entry Record entry CS2 Next > 10 of 13