Question
Need help putting together the table my numbers arent adding up right...... In January 2011, Keona Co. pays $2,800,000 for a tract of land with
Need help putting together the table my numbers arent adding up right......
In January 2011, 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 $641,300 with a useful life of 20 years and an $80,000 salvage 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 salvage value. Without the building and improvements, the tract of land is valued at $1,865,600. The company also incures the following additional costs:
cost to demolish Building 1............................................ $422,600
cost of additional land grading....................................$167,200
cost to construct new building (building 3), having a useful life of 25 years and a $390,100 salvage value..................................................$2,019,000
cost of new land improvements (Land Improvements 2) near building 2 having a 20 year useful life and no salvage value....................................$158,000
1. Prepare a table with the following column headings: Land, Building 2, Building 3, Land Improvements 1, Land Improvements 2. Allocate the cost incurred by Keona ot the appropriate columns and total each column ( round percents to the nearest 1%)
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