Required information [The following information applies to the questions displayed below.) On January 1, Mitzu Co. pays a lump sum amount of $2,700,000 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 $540,000, with a useful life of 20 years and a $90,000 salvage value. Land Improvements 1 is valued at $660,000 and is expected to last another 22 years with no salvage value. The land is valued at $1,800,000. The company also incurs the following additional costs. $ 348,400 193,400 Cost to demolish Building 1 Cost of additional land grading Cost to construct Building 3, having a useful life of 25 years and a $402,000 salvage value Cost of new Land Improvements 2 having a 20-year useful life and no salvage value 2,302, eee 173,000 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 $ 1,800,000 X X Land Building 2 Land Improvements 1 Totals X $ $ 0 0% 1,800,000 3:01 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 $ Required information [The following information applies to the questions displayed below) On January 1, Mitzu Co. pays a lump sum amount of $2,700,000 for land, Building 1. Building 2, and Land Improvements 1. Building has no value and will be demolished. Building 2 will be an office and is appraised at $540,000, with a useful life of 20 years and a $90,000 salvage value. Land Improvements 1 is valued at $660,000 and is expected to last another 22 years with no salvage value. The land is valued at $1,800,000. The company also incurs the following additional costs $ 348,400 193,400 530 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 2,302,000 173,000 2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1 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 19 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 Journal entry worksheet 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 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 Journal entry worksheet