[The following information applies to the questions displayed below.] On January 1, Mitzu Co. pays a lump-sum amount of
Posted: Wed Jul 06, 2022 6:10 am
- The Following Information Applies To The Questions Displayed Below On January 1 Mitzu Co Pays A Lump Sum Amount Of 1 (327.93 KiB) Viewed 19 times
1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column
[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 $579,500, with a useful life of 20 years and a $75,000 salvage value. Land Improvements 1 is valued at $549,000 and is expected to last another 18 years with no salvage value. The land is valued at $1,921,500. 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 $400,000 salvage value Cost of new Land Improvements 2 having a 20-year useful life and no salvage value $ 341,400 191,400 2,242,000 Help Save & Ex 168,000