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need someone to answer in full including the first set of boxes in rhe equation. im not fully understanding how to get these answers. O
need someone to answer in full including the first set of boxes in rhe equation. im not fully understanding how to get these answers.
O Required information (The following information applies to the questions displayed below.) In January 2017, Mitzu Co. pays $2,750,000 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 $750,000, with a useful life of 20 years and a $75,000 salvage value. A lighted parking lot near Building 1 has improvements (Land Improvements 1) valued at $420,000 that are expected to last another 14 years with no salvage value. Without the buildings and improvements, the tract of land is valued at $1,830,000. The company also incurs the following additional costs: $ 342,400 191,400 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 $402,000 salvage value Cost of new land improvements (Land Improvements 2) near Building 2 having a 20-year useful life and no salvage value 2,222,000 168,000 Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column. Allocation of purchase price Appraised Value X Total cost of acquisition Apportioned Cost Land $ Percent of Total Appraised Value 60% 22% 18% 100% X $ X 1,830,000 750,000 420.000 3,000,000 Building 2 Land Improvements 1 Totals $ 2,750,000 2.750,000 2.750,000 1,098,000 165,000 75,600 1,338,600 X $ $ Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column. Allocation of purchase price Appraised Value Total cost of acquisition Apportioned Cost $ Land Building 2 Land Improvements 1 Totals $ Percent of Total Appraised Value 60% x 22% X 18% X 100% 1,830,000 750,000 420,000 3,000,000 $ 2,750,000 2,750,000 2,750,000 1,098,000 165,000 75,600 1,338,600 $ $ Land Building 2 Building 3 Land Improvements 1 Land Improvements 2 Purchase Price Demolition Land grading New building (Construction cost) New improvements Totals $ 0 $ 0 $ 0 $ 0 $ Step by Step Solution
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