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Required information Problem 8-3A (Algo) Asset cost allocation: straight-line depreciation LO C1, P1 The following information applies to the questions displayed below! On January 1, Mitru Co pays a lump-sum amount of $2.800,000 for lond, Buliding 1, Building 2 and Land imprchements 1 Building 1 has no value and will be demolished Building 2 will be an office and is appraised at $767,000, with a useful life of 20 years and a $70,000 salvage value, Land Improvements 1 is valued at $442,500 and is expected to last another 15 years with no salvage value. The land is valued at $1,740,500 The company also incurs the following additional costs $ 346,400 191.400 Coat to demolish Building 1 Cont of additional land grading Cost to construct Building 3. having a useful life of 25 years and a $398,000 salvage Value Cost of new Land Improvemento 2 having a 20-year useful life and no walvage valge 2,262,000 178,000 Problem 8-3A (Algo) Part 1 Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column Allocation of Purchase Price Appraised Valoo Total cost of acquisition Apportioned Cost Percent of Total Appraised Value 60% x 22% X 18% x Land Building 2 Land Improvements 1 24 Coot of new Land Improvecents 2 having a 20-year useful life and no salvage value 178,000 Part 1 of 3 Problem 8-3A (Algo) Part 1 44 ints Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column Allocation of Purchase Price Appraised Value Total cont at ncquisition Apportioned Cost eBook Percent of Total Appraised Value 60% 2296 x 18% X 100% Land Building 2 Land Improvements 1 Totals References F $ 0 $ 0 Land Building 2 Buliding a Land Improvements Land Improvements 2 Purchase Price Demolition Land grading New building (Construction cost) New improvements Totals 0 $ 0 $ 0 $ $ 05 24 25 26 Prev of 29 Next > Record the cost of the plant assets, paid in cash. ook Note: Enter debits before credits ences Date General Journal Debit Credit Jan 01 Record entry Clear entry View general journal Journal entry worksheet 1 3 N 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 Record entry Clear entry View general journal of 3 In use. yer View transaction list Journal entry worksheet ook Journal entry worksheet View transaction list Journal entry worksheet k

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