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Having trouble to this, please show work Part 1 Part 2 Part 3 Required information The following information applies to the questions displayed below) On
Having trouble to this, please show work
Required information The following information applies to the questions displayed below) On January 1, Mitzu Co. pays a lump-sum amount of $2,600,000 for land, Building 1, Building 2, and Land Improvements 1 Building 1has no value and will be demolished. Building 2 will be an office and is appraised at $644,000, with a useful life of 20 years and a $60,000 salvage value. Land Improvements 1 is valued at $420,000 and is expected to last another 12 years with no salvage value. The land is valued at $1,736,000. The company also incurs the following additional costs. $ 328.400 175,400 Coat to demolish Building 2 Coat of additional land grading Cost to construct Building 3, having a useful life of 25 years and a 392,000 salvage value Coat of new Land Improvements 2 having a 20-year useful life and no salvage value 2,202,000 164.000 Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column Allocation of Purchase Price Appraised Value Percent of Total Appraised Value Total Cost of Acquisition Apportioned Building 2 Land Improvements Totals Land Building 2 Building 3 Land Land Improvements 1 Improvements 2 Purchase Price Demolition Land grading New building (Construction cost) New improvements Totals 0 $ 0 $ 0 $ 0 Required information 2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1. View transaction list Journal entry worksheet Record the cost of the plant assets, paid in cash. Note: Enter debits before credits. Date General Journal Debit Credit Jan 01 Record entry Clear entry View general journal 164,000 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 Journal entry worksheet Le 3 View transaction list Journal entry worksheet Part 1
Part 2
Part 3
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