Date | General Journal | Debit | Credit | ||||
Jan 1 | Land | 2,140,800 | |||||
Building 2 | 624,000 | ||||||
Building 3 | 2,262,000 | ||||||
Land improvements 1 | 364,000 | ||||||
Land improvements 2 | 178,000 | ||||||
Cash | 5,568,800 | ||||||
Workings: | |||||||
Allocation of Purchase Price | Appraised Value |
Percent of Total Appraised Value |
x |
Total Cost of Acquisition |
= | Apportioned Cost | |
Land | 1,860,000 | 62% | x | 2,600,000 | = | 1,612,000 | |
Building 2 | 720,000 | 24% | x | 2,600,000 | = | 624,000 | |
Land Improvements 1 | 420,000 | 14% | x | 2,600,000 | = | 364,000 | |
Totals | 3,000,000 | 100% | 2,600,000 | ||||
Land | Building 2 | Building 3 | Land Improvements 1 | Land Improvements 2 | |||
Purchase Price | 1,612,000 | 624,000 | 0 | 364,000 | 0 | ||
Demolition | 341,400 | 0 | 0 | 0 | 0 | ||
Land grading | 187,400 | 0 | 0 | 0 | 0 | ||
New building (Construction cost) | 0 | 0 | 2,262,000 | 0 | 0 | ||
New improvements cost | 0 | 0 | 0 | 0 | 178,000 | ||
Totals | 2140800 | 624000 | 2262000 | 364000 | 178000 |
Required information Problem 8-3A Asset cost allocation; straight-line depreciation LO C1, P1 (The following information applies...
Required information Problem 8-3A Asset cost allocation; straight-line depreciation LO C1, P1 [The following information applies to the questions displayed below.) In January 2018, Mitzu Co. pays $2,600,000 for a tract of land with two buildings on it. It plans to demolish Building 1 and build a new store in its place. Building 2 will be a company office; it is appraised at $720,000, with a useful life of 20 years and a $75,000 salvage value. A lighted parking lot...
Required information Problem 8-3A Asset cost allocation; straight-line depreciation LO C1, P1 [The following information applies to the questions displayed below.] In January 2017, Mitzu Co. pays $2,600,000 for a tract of land with two buildings on it. It plans to demolish Building 1 and build a new store in its place. Building 2 will be a company office; it is appraised at $644,000, with a useful life of 20 years and a $60,000 salvage value. A lighted parking lot...
Required information Problem 8-3A Asset cost allocation; straight-line depreciation LO C1, P1 (The following information applies to the questions displayed below.] In January 2018, Mitzu Co. pays $2,600,000 for a tract of land with two buildings on it. It plans to demolish Building 1 and build a new store in its place. Building 2 will be a company office; it is appraised at $720,000, with a useful life of 20 years and a $75,000 salvage value. A lighted parking lot...
Required information Problem 8-3A Asset cost allocation; straight-line depreciation LO C1, P1 (The following information applies to the questions displayed below.) In January 2018, Mitzu Co. pays $2,750,000 for a tract of land with two buildings on it. It plans to demolish Building 1 and build a new store in its place. Building 2 will be a company office; it is appraised at $750,000, with a useful life of 20 years and a $85,000 salvage value. A lighted parking lot...
Required information Problem 8-3A Asset cost allocation; straight-line depreciation LO C1, P1 [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 $701,500, with a useful life of 20 years and a $85,000 salvage value. Land Improvements 1 is valued at...
Chapter 8 Problems i Saved Required information Problem 8-3A Asset cost allocation; straight-line depreciation LO C1, P1 [The following information applies to the questions displayed below.) Part 2 of 3 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 $701,500, with a useful life of 20 years and a...
Chapter 8 Problems Saved Problem 8-3A Asset cost allocation; straight-line depreciation LO C1, P1 [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 $701,500, with a useful life of 20 years and a $85,000 salvage value. Land Improvements 1 is...
In January 2017, Mitzu Co. pays $2,750,000 for a tract of land with two buildings on it. It plans to demolish Building 1 and build a new store in its place. Building 2 will be a company office; it is appraised at $690,000, with a useful life of 20 years and a $75,000 salvage value. A lighted parking lot near Building 1 has improvements (Land Improvements 1) valued at $540,000 that are expected to last another 18 years with no...
Please answer the whole question. and how did you figure out the percentages. Required information [The following information applies to the questions displayed below.] In January 2017, Mitzu Co. pays $2,650,000 for a tract of land with two buildings on it. It plans to demolish Building 1 and build a new store in its place. Building 2 will be a company office; it is appraised at $701,500, with a useful life of 20 years and a $80,000 salvage value. A...
Required information [The following information applies to the questions displayed below.] On January 1, Mitzu Co. pays a lump-sum amount of $2,800,000 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 $701,500, with a useful life of 20 years and a $80,000 salvage value. Land Improvements 1 is valued at $549,000 and is expected to last another 18 years with...