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On January 1, Mitzu Company pays a lump-sum amount of $2,600,000 for land, Building 1,...

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Accounting

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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 $531,000, with a useful life of 20 years and a $75,000 salvage value. Land Improvements is valued at $560,500 and is expected to last another 19 years with no salvage value. The land is valued at $1,858,500. 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 goful life of 25 years and a $398,000 salvage value Cost of new Land Improvements 2, having a 20-year useful life and no salvage value $ 343,400 189,400 2,302,000 168,000 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 2 3 1 Record the year-end adjusting entry for the depreciation expense of Building 2. Note: Enter debits before credits General Journal Debit Credit Date December 31 Journal entry worksheet

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