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 $$750,000,$

with a useful life of $20$ years and a $$90,000$ salvage value. Land Improvements $1$ is valued at $$330,000$ and is expected to

last another $11$ years with no salvage value. The land is valued at $$1,920,000.$ The company also incurs the following

additional costs.

Required:

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

Journal entry worksheet

$1$

Record the cost of the plant assets, paid in cash.

Note: Enter debits before credits

Using the straight$-$line method, prepare the December $31$ adjusting entries to record depreciation for the first year these assets were

in use.

Journal entry worksheet

Record the year$-$end adjusting entry for the depreciation expense of Building

Note: Enter debits before credits.