Problem $10-3$A $($Algo$)$ Asset cost allocation; straight$-$line depreciation LO C$1,$ P$1$

$[$The following information applies to the questions displayed below.$]$

On January $1,$ Mitzu Company pays a lump$-$sum amount of $\backslash$$$2,650,000$ for land, Building $1,$ Building $2,$ and Land Improvements $1.$ Building $1$ has no value and will be demolished. Building $2$ will be an office and is appraised at $\backslash (\backslash$$ $678,500\backslash ),$ with a useful life of $20$ years and a $\backslash (\backslash$$ $80,000\backslash )$ salvage value. Land Improvements $1$ is valued at $\backslash (\backslash$$ $472,000\backslash )$ and is expected to last another $16$ years with no salvage value. The land is valued at $\backslash (\backslash$$ $1,799,500\backslash ).$ 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

$ $344,400$

$```$

Problem $10-3$A $($Algo$)$ Part $1$

Required:

$1.$ Allocate the costs incurred by Mitzu to the appropriate columns and total each column. $\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|$l$|$l$|$l$|\}$

$\backslash$hline & $\backslash$multicolumn$\{1\}\{|$c$|\}\{$ Land $\}$ & Building $2$ & Building $3$ & $\backslash$begin$\{$tabular$\}\{$c$\}$

Land $\backslash \backslash$

Improvements $1$

$\backslash$end$\{$tabular$\}$ & $\backslash$begin$\{$tabular$\}\{$c$\}$

Lmprovements $2$

$\backslash$end$\{$tabular$\}\backslash \backslash$

$\backslash$hline Purchase Price & & & & & $\backslash \backslash$

$\backslash$hline Demolition & & & & & $\backslash \backslash$

$\backslash$hline Land grading & & & & & $\backslash \backslash$

$\backslash$hline New building $($Construction cost$)$ & & & & & $\backslash \backslash$

$\backslash$hline New improvements & & & & & $\backslash \backslash$

$\backslash$hline Totals & & & & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$ Journal entry worksheet

Record the cost of the plant assets, paid in cash.

Note: Enter debits before credits.

$1$

$2$

$3$

$4$

Record the year$-$end adjusting entry for the depreciation expense of Land Improvements $2.$

Note: Enter debits before credits.

Record the year$-$end adjusting entry for the depreciation expense of Land Improvements $1.$

Note: Enter debits before credits.