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Please help! Required information [The following information applies to the questions displayed below.] On January 1, Mitzu Company pays a lump-sum amount of $2,650,000 for
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Required information [The following information applies to the questions displayed below.] On January 1, Mitzu Company pays a lump-sum amount of $2,650,000 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 $590,000, with a useful life of 20 years and a $70,000 salvage value. Land Improvements 1 is valued at $619,500 and is expected to last another 21 years with no salvage value. The land is valued at $1,740,500. 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 $398,000 salvage value 189,400 Con Cost of new Land Improvements 2, having a 20 -year useful life and no salvage value Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each columnStep by Step Solution
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