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Pleass help me nobody has been able to get it right! Required information Problem 8-3A (Algo) Asset cost allocation; straight-line depreciation LO C1, P1 [The
Pleass help me nobody has been able to get it right!
Required information Problem 8-3A (Algo) Asset cost allocation; straight-line depreciation LO C1, P1 [The following information applies to the questions displayed below] On January 1, Mitzu Company pays a lump-sum amount of $2,800,000 for land, Building 1, Building 2, and Land Improvements 1. Bullding 1 has no value and will be demolished. Buliding 2 will be an office and is appraised at $690,000, with a useful life of 20 years and a $85,000 salvage value. Land Improvements 1 is valued at $510,000 and is expected to fast another 17 years with no salvage value. The land is valued at $1,800,000. The company also incurs the following additional costs. Cost to denolish Building 1 cost of additional land grading \begin{tabular}{rr} cost to construet sullding 3 , having a useful 1 ife of 25 years and a $398,000 alvage value & 193,400 \\ \hline \end{tabular} costofnewLandImprovenents2,havinga20-yearusefuliffoandnosalvagevalue178,0002,242,000 Problem 8-3A (Algo) Part 3 Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets were use. 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets were in use Step by Step Solution
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