of 3 ! Required information Problem 8-3A (Static) Asset cost allocation; straight-line depreciation LO C1, P1...

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of 3 ! Required information Problem 8-3A (Static) Asset cost allocation; straight-line depreciation LO C1, P1 [The following information applies to the questions displayed below.] On January 1, Mitzu Company pays a lump-sum amount of $2,600,000 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 $644,000, with a useful life of 20 years and a $60,000 salvage value. Land Improvements 1 is valued at $420,000 and is expected to last another 12 years with no salvage value. The land is valued at $1,736,000. The company also incurs the following additional costs. Book Cost to demolish Building 1 Cost of additional land grading $ 328,400 Cost to construct Building 3, having a useful life of 25 years and a $392,000 salvage value Cost of new Land Improvements 2, having a 20-year useful life and no salvage value 175,400 2,202,000 164,000 Print erences Problem 8-3A (Static) Part 1 Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column. Percent of Allocation of Purchase Price Appraised Value Total Appraised Value Land Building 2 Land Improvements 1 Totals $ 817,600 0% $ 173,600 644,000 x Total Cost of Acquisition X $ 2,600,000 2,600,000 ==1 X 2,600,000 $ Apportioned Cost of 3 ! Required information Problem 8-3A (Static) Asset cost allocation; straight-line depreciation LO C1, P1 [The following information applies to the questions displayed below.] On January 1, Mitzu Company pays a lump-sum amount of $2,600,000 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 $644,000, with a useful life of 20 years and a $60,000 salvage value. Land Improvements 1 is valued at $420,000 and is expected to last another 12 years with no salvage value. The land is valued at $1,736,000. The company also incurs the following additional costs. Book Cost to demolish Building 1 Cost of additional land grading $ 328,400 Cost to construct Building 3, having a useful life of 25 years and a $392,000 salvage value Cost of new Land Improvements 2, having a 20-year useful life and no salvage value 175,400 2,202,000 164,000 Print erences Problem 8-3A (Static) Part 1 Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column. Percent of Allocation of Purchase Price Appraised Value Total Appraised Value Land Building 2 Land Improvements 1 Totals $ 817,600 0% $ 173,600 644,000 x Total Cost of Acquisition X $ 2,600,000 2,600,000 ==1 X 2,600,000 $ Apportioned Cost