On January 1, Mitzu Co. pays a lump-sum amount of $2,650,000 for land, Building 1, Building...

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On January 1, Mitzu Co. pays a lump-sum amount of $2,650,000 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 $750,000, with a useful life of 20 years and a $85,000 salvage value. Land Improvements 1 is valued at $450,000 and is expected to last another 15 years with no salvage value. The land is valued at $1,800,000. The company also incurs the following additional costs. Cost to demolish Building 1 Cost of additional land grading 338,400 189,400 Cost to construct Building 3, having a useful life of 25 years and a $402,000 salvage value 2,222,000 Cost of new Land Improvements 2 having a 20-year useful life and no salvage value 178,000 Required: B 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 X Total cost of acquisition X ok Land Building 2 X nt Land Improvements 1 X Totals ences Land Building 2 Purchase Price Demolition Land grading New building (Construction cost) New improvements Totals Building 3 = Apportioned Cost = Land Improvements 1 = = Land Improvements 2 + Required information [The following information applies to the questions displayed below.] On January 1, Mitzu Co. pays a lump-sum amount of $2,650,000 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 $750,000, with a useful life of 20 years and a $85,000 salvage value. Land Improvements 1 is valued at $450,000 and is expected to last another 15 years with no salvage value. The land is valued at $1,800,000. The company also incurs the following additional costs. Cost to demolish Building 1 $ 338,400 189,400 Cost of additional land grading. Cost to construct Building 3, having a useful life of 25 years and a $402,000 salvage value Cost of new Land Improvements 2 2,222,000 178,000 having a 20-year useful life and no salvage value. 2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1. ces Journal entry worksheet < 1 Record the cost of the plant assets, paid in cash. Note: Enter debits before credits. Date General Journal Jan 01 Clear entry Record entry Debit Credit View general journal Required information [The following information applies to the questions displayed below.] On January 1, Mitzu Co. pays a lump-sum amount of $2,650,000 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 $750,000, with a useful life of 20 years and a $85,000 salvage value. Land Improvements 1 is valued at $450,000 and is expected to last another 15 years with no salvage value. The land is valued at $1,800,000. The company also incurs the following additional costs. Cost to demolish Building 1 $ 338,400 189,400 Cost of additional land grading Cost to construct Building 3, having a useful life of 25 years and a $402,000 salvage value Cost of new Land Improvements 2 2,222,000 178,000 having a 20-year useful life and no salvage value. 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets were in use. of 3 ook rint rences 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. Date General Journal Debit Credit Dec 31 Clear entry View general journal Record entry Journal entry worksheet < 1 2 3 4 Record the year-end adjusting entry for the depreciation expense of Building 3. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Clear entry View general journal Record entry > Journal entry worksheet < 12 3 4 Record the year-end adjusting entry for the depreciation expense of Land Improvements 1. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Clear entry View general journal Record entry Journal entry worksheet < 1 2 3 Record the year-end adjusting entry for the depreciation expense of Land Improvements 2. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Clear entry View general journal Record entry On January 1, Mitzu Co. pays a lump-sum amount of $2,650,000 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 $750,000, with a useful life of 20 years and a $85,000 salvage value. Land Improvements 1 is valued at $450,000 and is expected to last another 15 years with no salvage value. The land is valued at $1,800,000. The company also incurs the following additional costs. Cost to demolish Building 1 Cost of additional land grading 338,400 189,400 Cost to construct Building 3, having a useful life of 25 years and a $402,000 salvage value 2,222,000 Cost of new Land Improvements 2 having a 20-year useful life and no salvage value 178,000 Required: B 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 X Total cost of acquisition X ok Land Building 2 X nt Land Improvements 1 X Totals ences Land Building 2 Purchase Price Demolition Land grading New building (Construction cost) New improvements Totals Building 3 = Apportioned Cost = Land Improvements 1 = = Land Improvements 2 + Required information [The following information applies to the questions displayed below.] On January 1, Mitzu Co. pays a lump-sum amount of $2,650,000 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 $750,000, with a useful life of 20 years and a $85,000 salvage value. Land Improvements 1 is valued at $450,000 and is expected to last another 15 years with no salvage value. The land is valued at $1,800,000. The company also incurs the following additional costs. Cost to demolish Building 1 $ 338,400 189,400 Cost of additional land grading. Cost to construct Building 3, having a useful life of 25 years and a $402,000 salvage value Cost of new Land Improvements 2 2,222,000 178,000 having a 20-year useful life and no salvage value. 2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1. ces Journal entry worksheet < 1 Record the cost of the plant assets, paid in cash. Note: Enter debits before credits. Date General Journal Jan 01 Clear entry Record entry Debit Credit View general journal Required information [The following information applies to the questions displayed below.] On January 1, Mitzu Co. pays a lump-sum amount of $2,650,000 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 $750,000, with a useful life of 20 years and a $85,000 salvage value. Land Improvements 1 is valued at $450,000 and is expected to last another 15 years with no salvage value. The land is valued at $1,800,000. The company also incurs the following additional costs. Cost to demolish Building 1 $ 338,400 189,400 Cost of additional land grading Cost to construct Building 3, having a useful life of 25 years and a $402,000 salvage value Cost of new Land Improvements 2 2,222,000 178,000 having a 20-year useful life and no salvage value. 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets were in use. of 3 ook rint rences 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. Date General Journal Debit Credit Dec 31 Clear entry View general journal Record entry Journal entry worksheet < 1 2 3 4 Record the year-end adjusting entry for the depreciation expense of Building 3. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Clear entry View general journal Record entry > Journal entry worksheet < 12 3 4 Record the year-end adjusting entry for the depreciation expense of Land Improvements 1. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Clear entry View general journal Record entry Journal entry worksheet < 1 2 3 Record the year-end adjusting entry for the depreciation expense of Land Improvements 2. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Clear entry View general journal Record entry

Answer rating: 100% (QA)

Allocation of Purchase Price Appraised Value Percent of Total Appraised Value x Total Cost of Acquis... View the full answer