Required information [The following information applies to the questions displayed below

Subject:AccountingPrice: Bought3

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Required information [The following information applies to the questions displayed below.] On January 1, Mitzu Co. 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 $690,000, with a useful life of 20 years and a $90,000 salvage value. Land Improvements 1 is valued at $480,000 and is expected to last another 16 years with no salvage value. The land is valued at $1,830,000. The company also incurs the following additional costs. $ 346,400 195,400 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 2,242,000 168,000 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 S ? = ? Land Building 2 Land Improvements 1 Totals 1,830,000 690,000 480,000 3,000,000 ? S 0% $ Land Building 2 Building 3 Land Land Improvements 1 Improvements 2 S 2,800,000 Purchase Price Demolition Land grading New building (Construction cost) New improvements Totals S 2,800,000 $ 0 $ 0 $ 0 $ 0 2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1. 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 Jan 01 Record entry Clear entry View general journal 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets were in use. View transaction list 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 Dec 31 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 3. Journal entry worksheet 1 2 3 4 Record the year-end adjusting entry for the depreciation expense of Land Improvements 1. < 1 2 3 4 Record the year-end adjusting entry for the depreciation expense of Land Improvements 2. Note: Enter debits before credits.