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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 $2,700,000 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 $2,700,000 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 $780,000, with a useful life of 20 years and a $85,000 salvage value. Land Improvements 1 is valued at $360,000 and is expected to last another 12 years with no salvage value. The land is valued at $1,860,000. The company also incurs the following additional costs. $ 346,400 187,400 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 2,242,000 173,000 Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column. Percent of Total Appraised Allocation of purchase price T otal costo - Apportioned Cost 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column. Percent of Total Allocation of purchase price Value Total cost of acquisition Appraised Value Apportioned Cost Land Building 2 Land Improvements 1 Totals Land Building 2 Building 3 Land Land Improvements 1 Improvements 2 Purchase Price Demolition Land grading New building (Construction cost) New improvements Totals Record the cost of the plant assets, paid in cash. Note: Enter debits before credits. Date General Journal Debit Credit Jan 01 Required information 1 2 0 0 Record the year-end adjusting entry for the depreciation expense of Building Note: Enter debits before credits. General Journa Debit Credit Date Dec 31 Hecord entry Clear entry View general journal Required information Record the year-end adjusting entry for the depreciation expense of Land Improvements 1. Note: Enter debits before credits. Date General Journal Debit 1 Credit Dec 31 Record entry Clear entry View general journal Required information 0 Record the year-end adjusting entry for the depreciation expense of Land Improvements 2. Note: Enter debits before credits. General Journal Debit Date Dec 31 Credit Record entry care View general joumal Kiev 6 of 14 Next >

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