! Required information [The following information applies to the questions displayed below. On January 1, Mitzu Co. 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 $720,000, with a useful life of 20 years and a $90,000 salvage value. Land Improvements 1 is valued at $390,000 and is expected to last another 13 years with no salvage value. The land is valued at $1,890,000. The company also incurs the following additional costs. $ 347,400 187,400 Cost to demolish Building 1 Cost of additional land grading Cost to construct Building 3, having a useful life of 25 years and a $400,000 salvage value Cost of new Land Improvements 2 having a 20-year useful life and no salvage value 2,222,000 173,000 Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column. Allocation of purchase price Appraised Value Percent of Total Appraised Value Total cost of acquisition = Apportioned Cost Il = Land Building 2 Land Improvements 1 Totals X II $ 0 0% 0 Land Building 2 Building 3 Land Land Improvements 1 Improvements 2 Purchase Price Demolition Land grading New building (Construction cost) New improvements Totals $ 0 $ 0 $ 0 0 $ 2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1. View transaction list Journal entry worksheet 1 > Record the cost of the plant assets, paid in cash. Note: Enter debits before credits. General Journal Debit Credit Date Jan 01 Record entry Clear entry View general Journal 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets were in use. View transaction list X 1 > Record the year-end adjusting entry for the depreciation expense of Building 2. Building 2 Record the year-end adjusting entry for the depreciation expense of Building 3. 3 Record the year-end adjusting entry for the depreciation expense of Land Improvements 1. Credit 4 Record the year-end adjusting entry for the depreciation expense of Land Improvements 2. Note : = journal entry has been entered Record entry Clear entry View general Journal