Answered step by step
Verified Expert Solution
Question
1 Approved Answer
need help with all of it please and thank you. please provide how you get the answers. [The following information applies to the questions displayed
need help with all of it please and thank you. please provide how you get the answers.
[The following information applies to the questions displayed below) On January 1, Mitzu Company pays a lump-sum amount of $2,800,000 for land, Building 1. Building 2, and Land Improvements 1 Building 1 has no value and will be demolished. Building 2 will be an office and is appraised at $671,000. with a useful life of 20 years and a $75,000 salvage value. Land Improvements 1 is valued at $518,500 and is expected to last another 17 years with no salvage value. The land is valued at $1,860,500. 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 Cost of new Land Improvements 2, having a 20-year useful life and no salvage value $ 341,400 191,400 2,302,000 173,000 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 Cost Land Building 2 Land Improvements 1 Totals 0% Allocation ob Purchase Price Value Appraised Value acquisition Apportioned Cost Land Building 2 Land Improvements 1 Totals 0% Land Building 2 Land Building 3 Land Improvements 1 Improvements 2 Purchase Price Demolition Land grading New building (Construction cost) New improvements Totals 05 0 $ 0 $ Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started