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Required information [The following information applies to the questions displayed below.) On January 1, Mitzu Co. pays a lump-sum amount of $2,800,000 for land, Building

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Required information [The following information applies to the questions displayed below.) On January 1, Mitzu Co. pays a lump-sum amount of $2,800,000 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 $793,000, with a useful life of 20 years and a $70,000 salvage value. Land Improvements 1 is valued at $457,500 and is expected to last another 15 years with no salvage value. The land is valued at $1,799,500. 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 $400,000 salvage value Cost of new Land Improvements 2 having a 20-year useful life and no salvage value $ 344,400 185,400 2,302,600 173,000 Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column. 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 Land Building 2 Land improvements 1 Totals Land Building 2 Building 3 Land Improvements 1 Land Improvements 2 Purchase Price Demolition Land grading New building Construction cost) Now improvements Totals 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 Record the cost of the plant assets, paid in cash. Note: Enter debits before credits Date General Journal Debit Credit Jan 01 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 Journal entry worksheet 2 3 4 Record the year-end adjusting entry for the depreciation expense of Building Note: Enter debits before credits Date General Journal Debit Credit Dec 31 View general journal View transaction list Journal entry worksheet Record the year-end adjusting entry for the depreciation expense of Building Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 "lew transaction list Journal entry worksheet

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