On January 1, ProTech Co. pays a lump-sum amount of $1,550,000 for land, Building A, Building B, and Land Improvements B. Building A has no value and will be demolished. Building B will be an office and is appraised at $482,800, with a useful life of 15 years and a $99,500 salvage value. Land Improvements B is valued at $142,000 and is expected to last another five years with no salvage value. The land is valued at $795,200. The company also incurs the following additional costs.

Required

1. Prepare a table with the following column headings: Land, Building B, Building C, Land Improvements B, and Land Improvements C. Allocate the costs incurred by ProTech to the appropriate columns and total each column.

2. Prepare a single journal entry to record all incurred costs assuming they are paid in cash on January 1.

3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets were in use.

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Cost to demolish Building A $ 122,000 Cost of additional land grading. Cost of new Land Improvements C, having a 10-year useful life and no salvage value $174,500 Cost to construct Building C, having a useful life of 20 years and a $258,000 salvage value..... 1,458,000 103,500