Required information (The following information applies to the questions displayed below.) On January 1, Mitzu Company p

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Required Information The Following Information Applies To The Questions Displayed Below On January 1 Mitzu Company P 1 (39.86 KiB) Viewed 55 times

Required Information The Following Information Applies To The Questions Displayed Below On January 1 Mitzu Company P 2 (20.09 KiB) Viewed 55 times

Required information (The following information applies to the questions displayed below.) On January 1, Mitzu Company pays a lump-sum amount of $2,800,000 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 $796,500, with a useful life of 20 years and a $70,000 salvage value. Land Improvements 1 is valued at $442,500 and is expected to last another 15 years with no salvage value. The land is valued at $1,711,000. The company also incurs the following additional costs. Cost to demolish Building 1 Cost of additional land grading Cost to construct Building 3, having a useful life of 25 years and a $398,000 salvage value Cost of new Land Improvements 2, having a 20-year useful life and no salvage value $ 344, 400 195,400 2,262,000 173,000
Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column. Allocation of Purchase Price Appraised Value Percent of Total Appraised Value Total cost of acquisition Apportioned Cost Land X X = Building 2 Land Improvements 1 Totals X Land Building 2 Building 3 Land Improvements 1 Land Improvements 2 Purchase Price Demolition Land grading New building Construction cost) New improvements Totals
View transaction list Journal entry worksheet < 1 > Record the cost of the plant assets, paid in cash. Note: Enter debits before credits. General Journal Debit Credit Date January 01 Record entry Clear entry View general journal
Journal entry worksheet < 1 2 3 4 > Record the year-end adjusting entry for the depreciation expense of Building 2. Note: Enter debits before credits. General Journal Debit Credit Date December 31 Record entry Clear entry View general journal