SOLVE QUESTIONS 9-11 (3 PART QUESTION)

10 Required Information Part 2 of 3 [The following information applies to the questions displayed below] On January 1, Mitzu Company pays a lump-sum amount of $2,750,000 for land, Building 1, Building 2, and Land 1.5 Improvements 1. Building 1 has no value and will be demolished. Building 2 will be an office and is appraised at $660,000, points with a useful life of 20 years and a $90,000 salvage value. Land Improvements 1 is valued at $570,000 and is expected to last another 19 years with no salvage value. The land is valued at $1,770,000. The company also incurs the following additional costs. Cost to demolish Building 1 $ 338, 408 :Book Cost of additional land grading 189, 408 Cost to construct Building 3, having a useful life of 25 years and a $408, Bee salvage value 2, 242, BOB Cost of new Land Improvements 2, having a 20-year useful life and no salvage value 178, 808 Print 2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1. in References View transaction list Journal entry worksheet Record the cost of the plant assets, paid in cash. Note: Enter debits before credits. Date General Journal Debit Credit January 01 Record entry Clear entry View general journal11 Required Information Part 3 of 3 [The following information applies to the questions displayed below ] On January 1, Mitzu Company pays a lump-sum amount of $2,750,000 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 $660,000, 1.5 with a useful life of 20 years and : $90,000 salvage value. Land Improvements 1 is valued at $570,000 and is expected to points lost another 19 years with no salvage value. The land is valued at $1,770,000. The company also incurs the following additional costs. Cost to demolish Building 1 $ 338, 408 Book Cost of additional land grading 189 , 408 Cost to construct Building 3, having a useful life of 25 years and a $408, Bee salvage value 2, 242, BOB Cost of new Land Improvements 2, having a 20-year useful life and no salvage value Print 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets were In in use References View transaction Ilist Journal entry worksheet 2 3 Record the year-end adjusting entry for the depreciation expense of Building 2. Note: Enter debits before credits. Date General Journal Debit Credit December 31 Record entry Clear entry View general journal9 Required Information Part 1 of 3 [The following Information applies to the questions displayed below.] On January 1, Mitzu Company pays a lump-sum amount of $2,750,000 for land, Building 1, Building 2, and Land 1.5 Improvements 1. Building 1 has no value and will be demolished. Building 2 will be an office and is appraised at $660,000, points with a useful life of 20 years and a $90,000 salvage value. Land Improvements 1 is valued at $570,000 and is expected to last another 19 years with no salvage value. The land is valued at $1,770,000. The company also incurs the following additional costs. cost to demolish Building 1 $ 338, 460 =Book cost of additional land grading 189, 406 Cost to construct Building 3, having a useful life of 25 years and a $400,000 salvage value 2, 242, 060 Cost of new Land Improvements 2, having a 20-year useful life and no salvage value 178, 060 Print References Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column. Percent of Allocation of Purchase Price Appraised Total Total cost of Value Appraised acquisition Apportioned Cost Value Land S 1,770,000 59% $ 2,750,000 S 1,622.500 Building 2 660,000 22% 2,750,000 605,000 Land Improvements 1 570,000 19% 2,750,000 522,500 Totals S 3,000,000 100% 2,750,000 Land Land Land Building 2 Building 3 Improvements 1 Improvements 2 Purchase Price S 1,622,500 $ 605,000 $ 522,500 Demolition Land grading New building (Construction cost) New improvements Totals S 1,622,500 $ 605,000 $ 522,500 $ 0