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On January 1 , Mitzu Company pays a lump - sum amount of $ 2 , 6 5 0 , 0 0 0 for land,
On January Mitzu Company pays a lumpsum amount of $ for land, Building Building and Land Improvements Building has no value and will be demolished. Building will be an office and is appraised at $ with a useful life of years and a $ salvage value. Land Improvements is valued at $ and is expected to last another years with no salvage value. The land is valued at $ The company also incurs the following additional costs.
Cost to demolish Building $
Cost of additional land grading
Cost to construct Building having a useful life of years and a $ salvage value
Cost of new Land Improvements having a year useful life and no salvage value
Required information
The following information applles to the questions displayed below.
On January Mitzu Company pays a lumpsum amount of $ for land, Bullding Bullding and Land
Improvements Bullding has no value and will be demolished. Bullding will be an office and Is appralsed at $
With a useful Iffe of years and a $ salvage value. Land Improvements is valued at $ and is expected to
last another years with no salvage value. The land is valued at $ The company also Incurs the following
additional costs.
Cost to denolish Building
Cost of additional land grading
Cost to construct Building having a useful ife of years and a $ salvage value
cost of new Land Improvenents having a year useful life and no salvage value
$
Required:
Allocate the costs Incurred by Mitzu to the approprlate columns and total each column.
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