Return to quest 26 Required information Part 3 of 3 Problem 8-3A (Algo) Asset cost allocation; straight-line depreciation LO C1, P1 [The following information applies to the questions displayed below.] 3.44 points 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 $708,000, with a useful life of 20 years and a $90,000 salvage value. Land Improvements 1 is valued at $501,500 and is expected to last another 17 years with no salvage value. The land is valued at $1,740,500. The company also incurs the following additional costs. $ 343, 400 191,400 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 2,282,000 168,000 Problem 8-3A (Algo) Part 3 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets were in use. Answer is not complete. No Date Credit Debit 28,150 X 1 General Journal Depreciation expense Building 2 Accumulated depreciation-Building 2 Dec 31 26 of 20 years and a $90,000 salvage value. Land Improvements 1 is valued at $501,500 and is expected to last another 17 years with no salvage value. The land is valued at $1,740,500. The company also incurs the following additional costs. Part 3 of 3 $ 343,400 191,400 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 2,282,000 3.44 points 168,000 Problem 8-3A (Algo) Part 3 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets were in use. X Answer is not complete. No Date Debit Credit 1 Dec 31 General Journal Depreciation expenseBuilding 2 Accumulated depreciation-Building 2 28,150 X 2 Dec 31 Depreciation expense-Building 3 Accumulated depreciation-Building 3 3 Dec 31 Depreciation expense-Land improvements 1 Accumulated depreciation Land improvements 1 4 Dec 31 Depreciation expense-Land improvements 2 Accumulated depreciation Land improvements 2