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 $649,000, with a useful life of 20 years and a $85,000 salvage value. Land improvements is valued at $472.000 and is expected to last another 16 years with no salvage value. The land is valued at $1,829,000. The company also incurs the following additional costs. $ 341,400 193,400 2,262,000 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 168,000 Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column Appraised Value Allocation of purchase price Percent of Total Appraised Value X Total cost of acquisition Apportioned Cost $ 1.820,000 X Land Building 2 Land improvements 1 Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column. Appraised Value Allocation of purchase price Percent of Total Appraised Value X Total cost of acquisition Apportioned Cost $ 1,829,000 Land Building 2 Land Improvements 1 Totals X $ 0 $ 0% 1,829,000 Land Building 2 Building 3 Land Improvements 1 Land Improvements 2 Purchase Price Demolition Land grading New building (Construction cost) New improvements Totals 0 0 $ 0 0 $ 0 $ $ $ 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 $649.000, with a useful life of 20 years and a $85,000 salvage value. Land Improvements 1 is valued at $472.000 and is expected to last another 16 years with no salvage value. The land is valued at $1829.000. The company also incurs the following additional costs. $ 341,400 199,00 Cost to demolish Building 1 Cost of additional land grading Cost to construct Building 3, having a useful life of 25 years and a $100,000 salvage value Cost of new Land Improvements 2 having a 20-year useful life and no salvage value 2,262.000 165,000 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 Journal entry worksheet > 2 3 4 Journal entry worksheet 2. 3 4 Record the year-end adjusting entry for the depreciation expense of Building 2. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general Journal Journal entry worksheet 1 2 3 4 Record the year-end adjusting entry for the depreciation expense of Building 3 Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal Journal entry worksheet 4 Record the year-end adjusting entry for the depreciation expense of Land Improvements 1. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31 Record entry Clear entry View general journal Journal entry worksheet
