$!$

Required information

$[$The following information applies to the questions displayed below.$]$

On January $1,$ Mitzu Company pays a lump$-$sum amount of $$2,750,000$ for land, Building $1,$ Building $2,$ and Land Improvements $1.$ Building $1$ has no value and will be demolished. Building $2$ will be an office and is appraised at $$690,000,$ with a useful life of $20$ years and a $$70,000$ salvage value. Land Improvements $1$ is valued at $$450,000$ and is expected to last another $15$ years with no salvage value. The land is valued at $$1,860,000.$ 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 $$402,000$ salvage value $2,262,000$

Cost of new Land Improvements $2,$ having a $20-$year useful life and no salvage value

$173,000$

Required:

Allocate the costs incurred by Mitzu to the appropriate columns and total each column.

Required:

Allocate the costs incurred by Mitzu to the appropriate columns and total each column.

Answer is complete but not entirely correct.

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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 $$2,750,000$ for land, Building $1,$ Building $2,$ and Land Improvements $1.$ Building $1$ has no value and will be demolished. Building $2$ will be an office and is appraised at $$690,000,$ with a useful life of $20$ years and a $$70,000$ salvage value. Land Improvements $1$ is valued at $$450,000$ and is expected to last another $15$ years with no salvage value. The land is valued at $$1,860,000.$ The company also incurs the following additional costs.

Cost to demolish Building $1$

$$339,400$

Cost of additional land grading

$195,400$

Cost to construct Building $3,$ having a useful life of $25$ years and a $$402,000$ salvage value $2,262,000$

Cost of new Land Improvements $2,$ having a $20-$year useful life and no salvage value $173,000$

Required:

Allocate the costs incurred by Mitzu to the appropriate columns and total each column.