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In January 2015, Gilca Co. pays $2,600,000 for a tract of land with two buildings on it. It plans to demolish Building 1 and build a new store in its place. Building 2 will be a company office; it is appraised at $644,000, with a useful life of 20 years and a $60,000 salvage value. A lighted parking lot near Building 1 has improvements (Land Improvements 1) valued at $420,000 that are expected to last another 12 years with no salvage value. Without the buildings and improvements, the tract of land is valued at $1,736,000. The company also incurs the following additional costs: (8.3A) 1. Prepare a table with the following column headings: Land, Building 2, Building 3, Land Improvements 1, and Land Improvements 2. Allocate the costs incurred by Gilca to the appropriate columns and total each column (round percents to the nearest 1\%). 2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1, 2015. 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the 12 months of 2015 when these assets were in use. Part 1 \begin{tabular}{lcccc} Land & Building 2 & Building 3 & Land & Land \\ & & Improvements & Improvements \\ & 1 & 2 \\ \hline \end{tabular} Totals \begin{tabular}{lccc} "Allocation of purchase & Appraised & Percent of & Apportioned \\ price & Value & Total & Cost \\ \hline \end{tabular} Part 2 Part 3 In January 2015, Gilca Co. pays $2,600,000 for a tract of land with two buildings on it. It plans to demolish Building 1 and build a new store in its place. Building 2 will be a company office; it is appraised at $644,000, with a useful life of 20 years and a $60,000 salvage value. A lighted parking lot near Building 1 has improvements (Land Improvements 1) valued at $420,000 that are expected to last another 12 years with no salvage value. Without the buildings and improvements, the tract of land is valued at $1,736,000. The company also incurs the following additional costs: (8.3A) 1. Prepare a table with the following column headings: Land, Building 2, Building 3, Land Improvements 1, and Land Improvements 2. Allocate the costs incurred by Gilca to the appropriate columns and total each column (round percents to the nearest 1\%). 2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1, 2015. 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the 12 months of 2015 when these assets were in use. Part 1 \begin{tabular}{lcccc} Land & Building 2 & Building 3 & Land & Land \\ & & Improvements & Improvements \\ & 1 & 2 \\ \hline \end{tabular} Totals \begin{tabular}{lccc} "Allocation of purchase & Appraised & Percent of & Apportioned \\ price & Value & Total & Cost \\ \hline \end{tabular} Part 2 Part 3