oblems Saved Help Save Required information [The following information applies to the questions displayed below) On January 1, Mitzu Company pays a lump-sum amount of $2,700,000 for land, Building 1, Building 2, and Land Improvements 1. Bullding 1 has no value and will be demolished. Building 2 will be an office and is appraised at $630,000, with a useful life of 20 years and a $70,000 salvage value Land Improvements 1 is valued at $630,000 and is expected to last another 21 years with no salvage value. The land is valued at $1,740,000. The company also incurs the following additional costs. Cont to demolish Building 1 Cost of additional land grading Cost to construct Building 3, having a useful 11re of 25 years and a $398,000 salvage value cost of new Land improvements 2, having a 20-year useful life and no salvage value $ 347,400 195,400 2,282,000 178,000 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 $ 1,740,000 Land Building 2 Land improvements 1 Total 4 $ $ 0% 0 1,740,000 Land Building 2 Building a Land Improvements 1 Land Improvements 2 Drie Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column. 103 Allocation of Purchase Price Appraised Value Percent of Total Appraised Value Total cost of acquisition Apportioned Cost 5 $ 1,740,000 Land Building 2 Land Improvements 1 Totals BOOK # $ 1.740.000 0% $ Print ferences Land Building 2 Building 3 Land Improvements 1 Land Improvements 2 Purchase Price Demolition Land grading New building (Construction cost) New improvements Totals os 0 $ 0 OS $ 0 $ On January 1, Mitzu Company pays a lump-sum amount of $2,700,000 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 $630,000, with a useful life of 20 years and a $70,000 salvage value. Land Improvements is valued at $630,000 and is expected to last another 21 years with no salvage value. The land is valued at $1,740,000. The company also incurs the following additional costs. Coat to demolish Building 1 $ 347,400 Cost of additional land grading 195,400 Cost to construct Building 3, having a useful life of 25 years and a $398,000 salvage value 2,282,000 Coat of new Land Improvements 2, having a 20-year useful life and no malvage value 178,000 2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1. View transaction list Journal entry worksheet 1 Record the cost of the plant assets, paid in cash. Note: Enter debits before credits Debit Credit General Journal Date January 01 nrou 9 of 14 Next >
