Required Information [The following Information applies to the questions displayed below.] On January 1, Mitzu Co. pays a lump-sum amount of $2,600,000 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 $780,000, with a useful life of 20 years and a $80,000 salvage value. Land Improvements 1 Is valued at $420,000 and is expected to last another 14 years with no salvage value. The land is valued at $1,800,000. 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 Cost of new Land Improvements 2 having a 20-year useful life and no salvage value $ 343,400 191,400 2,222,000 178,000 Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column. Appraised Allocation of purchase price Value Percent of Total Appraised Value x Total cost of acquisition = Apportioned Cost x Land Building 2 Land Improvements 1 Totals Purchase Price Demolition Land grading New building (Construction cost) New improvements Totals x x Land Building 2 Building 3 = Land Land Improvements 1 Improvements 2 Required Information [The following Information applies to the questions displayed below.] On January 1, Mitzu Co. pays a lump-sum amount of $2,600,000 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 $780,000, with a useful life of 20 years and a $80,000 salvage value. Land Improvements 1 Is valued at $420,000 and is expected to last another 14 years with no salvage value. The land is valued at $1,800,000. 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 Cost of new Land Improvements 2 having a 20-year useful life and no salvage value $ 343,400 191,400 2,222,000 178,000 2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1. View transaction let Journal entry worksheet < Record the cost of the plant assets, paid in cash. Note: Enter debits before credits. Date Jan 01 General Journal Debit Credit Record entry Clear entry View general journal Required Information [The following Information applies to the questions displayed below.] On January 1, Mitzu Co. pays a lump-sum amount of $2,600,000 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 $780,000, with a useful life of 20 years and a $80,000 salvage value. Land Improvements 1 Is valued at $420,000 and is expected to last another 14 years with no salvage value. The land is valued at $1,800,000. 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 Cost of new Land Improvements 2 having a 20-year useful life and no salvage value $ 343,400 191,400 2,222,000 178,000 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 < 1 2 3 4 Record the year-end adjusting entry for the depreciation expense of Building 2. Note: Enter debits before credits. Date Dec 31 General Journal Debit Credit Record entry Clear entry View general journal