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how to solve this? On January 1, Mitzu Company pays a lump-sum amount of $2,600,000 for land, Building 1, Building 2 , and Land Improvements

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On January 1, Mitzu Company pays a lump-sum amount of $2,600,000 for land, Building 1, Building 2 , and Land Improvements 1. Bullding 1 has no value and will be demolished. Building 2 will be an office and is appraised at $737,500, with a useful life of 20 years and a $85,000 salvage value. Land Improvements 1 is valued at $354,000 and is expected to last another 12 years with no salvage value. The land is valued at $1,858,500. The company also incurs the following additional costs. Cost to demolish Building 1 Cost of additional land grading Cost to construct Building 3 , having a useful life of 25 years and a $400,000 salvage value 195,400 Cost of new Land Improvements 2 , having a 20-year useful 1 ife and no salvage value 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets we in use. 1 Record the year-end adjusting entry for the depreciation expense of Building 2. 2. Record the year-end adjusting entry for the depreciation and expense of Bullding 3 . 3 Record the year-end adjusting entry for the depreciation expense of Land Improvements 1. 4 Record the year-end adjusting entry for the depreciation expense of Land Improvements 2

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