Problem 8-3A Asset cost allocation; straightline depreciation LOC1, P1 [The following information applies to the questions displayed belowj In January 2015, Mitzu Co. pays $2.650.000 for a tract of land with two bulldings on it. It plans to demollsh Building 1 and build a new store In its place. Bullding 2 will be a company office; it appraised at $600,000. with a useful life of 20 years and a $80,000 salvage value. A llghted parking lot near Bullding 1 has salvage value. Without the bulldlngs and lmprovements, the tract of land ls valued at $1,860,000. The company also Incurs the following additional costs: 339.400 Cost to demolish Bullding 1 193,400 Cost of additional land gradlng Cost to construct new bulldlng (Bullding 3), having a useful life 2,222,000 of 25 years and a $400,000 salvage value Cost of new land lmprovements (Land improvements 2) near Bullding 2 168 000 having a 20-year useful life and no salvage value References Section Break Problem 8-3A Asset cost allocation; straightline depreciation LOC1, P1 [The following information applies to the questions displayed belowj In January 2015, Mitzu Co. pays $2.650.000 for a tract of land with two bulldings on it. It plans to demollsh Building 1 and build a new store In its place. Bullding 2 will be a company office; it appraised at $600,000. with a useful life of 20 years and a $80,000 salvage value. A llghted parking lot near Bullding 1 has salvage value. Without the bulldlngs and lmprovements, the tract of land ls valued at $1,860,000. The company also Incurs the following additional costs: 339.400 Cost to demolish Bullding 1 193,400 Cost of additional land gradlng Cost to construct new bulldlng (Bullding 3), having a useful life 2,222,000 of 25 years and a $400,000 salvage value Cost of new land lmprovements (Land improvements 2) near Bullding 2 168 000 having a 20-year useful life and no salvage value References Section Break