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Please answer I will thumbs you up!!! On January 1, Mitzu Company pays a lump-sum amount of $2,650,000 for land, Building 1, Buding 2, and
Please answer I will thumbs you up!!!
On January 1, Mitzu Company pays a lump-sum amount of $2,650,000 for land, Building 1, Buding 2, and Land Improvements 1. Building 1 has no value and will be demolished. Building 2 will be an office and is appraised at $570,000. with a useful life of 20 years and a $75,000 salvage value. Land Improvements 1 is valued at $540,000 and is expected to last another 18 years with no salvage value. The land is valued ot $1,890,000. The company also incurs the following additional costs. Coet to denolinh Burlding 1 Cost of additional land grading cont to conutruct Bailding 3, having a uneful 1ife of 25 yeara and a 5402,000 saivage value ,2,242,000 2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1. 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets were in use. Journal entry worksheet 4 Record the year-end adjusting entry for the depreciation expense of Building 2. Note: Enter debits before credits Step by Step Solution
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