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In January 2015, Keona Co. pays $2,800,000 for a tract of land with two buildings on it. It plans to demolish Building 1 and build
In January 2015, Keona Co. pays $2,800,000 for a tract of land with two buildings on it. It plans to demolish Building 1 and build a new store in its place. Building 2 will be a company office; it is appraised at $641,300, with a useful life of 20 years and an $80.000 residual value. A lighted parking lot near Building 1 has improvements (Land Improvements 1) valued at $408,100 that are expected to last another 14 years with no residual value. Without the buildings and improvements, the tract of land is valued at $1,865600. The company also incurs the following additional costs $422,600 Cost to demolish Building1 Cost of additional land grading Cost to construct new building (Building 3). having a useful life 167.200 2,019,000 of 25 years and a $390100 residual value Cost of new land improvements (Land Improvements 2) near Building 2 having a 20-year useful life and no residual value 158,000 value 10.00 points 1. Allocate the costs incurred by Keona to the appropriate columns and total each column. (Leave no cells blank be certain to enter "o" wherever required. Omit the "$" sign in your response. Land improvements improvements Land Building 2 Building 3 Purchase price Demolition Land grading New building New $ improvements Totals Reterences
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