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Required information Problem 8 - 3 A ( Algo ) Asset cost allocation; straight - line depreciation LO C 1 , P 1 [ The
Required information
Problem A Algo Asset cost allocation; straightline depreciation LO C P
The following information applies to the questions displayed below.
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
oblem A Algo Part
Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January
Answer is not complete.
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