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Kindly please solve this thank you Land Land Land Building 2 Building 3 Improvements 1 Improvements 2 Purchase Price Demolition Land grading New building (Construction
Kindly please solve this thank you
Land Land Land Building 2 Building 3 Improvements 1 Improvements 2 Purchase Price Demolition Land grading New building (Construction cost) New improvements Totals ! Required information [The following information applies to the questions displayed below. In January 2017, Mitzu Co. pays $2,650,000 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 $810,000, with a useful life of 20 years and a $80,000 salvage value. A lighted parking lot near Building 1 has improvements (Land Improvements 1) valued at $390,000 that are expected to last another 13 years with no salvage value. Without the buildings and improvements, the tract of land is valued at $1,800,000. The company also incurs the following additional costs: Cost to demolish Building 1 Cost of additional land grading Cost to construct new building (Building 3), having a useful life of 25 years and a $400,000 salvage value Cost of new land improvements (Land Improvements 2) near Building 2 having a 20-year useful life and no salvage value $ 343,400 189,400 2,282,000 178,000 Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column. Percent of Appraised Value Allocation of purchase price Total Appraised Value Total cost of Apportioned Cost acquisition Land X Building 2 X Land Improvements 1 X TotalsStep by Step Solution
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