Allocate the lump-sum amount paid to Building 2, Land Improvement 1, and Land as follows: | |||||
Appraised Value | Percent of Total Appraised Value | Lump-sum amount paid | Allocated cost | ||
Land | 1711000 | 58% | 2800000 | 1624000 | |
Building 2 | 737500 | 25% | 2800000 | 700000 | |
Land Improvements 1 | 501500 | 17% | 2800000 | 476000 | |
Total | 2950000 | 100% | 2800000 | ||
Determine the amount to be recorded as the cost of each asset as follows: | |||||
Land | Building 2 | Building 3 | Land Improvements 1 | Land Improvements 2 | |
Allocated cost | 1624000 | 700000 | 476000 | ||
Cost to demolish Building 1 | 342400 | ||||
Land grading cost | 187400 | ||||
Cost to construct Building 3 | 2202000 | ||||
Cost of Land Improvements 2 | 168000 | ||||
Total cost to be recorded85 | 2153800 | 700000 | 2202000 | 476000 | 168000 |
Prepare the required journal entries as follows: | |||
1. Record the year-end adjusting entry for depreciation expense of Building 2. | |||
Date | General Journal | Debit | Credit |
Dec. 31 | Depreciation expense (700000-85000)/20 | 30750 | |
Accumulated Depreciation - Building 2 | 30750 | ||
2. Record the year-end adjusting entry for depreciation expense of Building 3. | |||
Date | General Journal | Debit | Credit |
Dec. 31 | Depreciation expense (2202000-402000)/25 | 72000 | |
Accumulated Depreciation - Building 3 | 72000 | ||
3. Record the year-end adjusting entry for depreciation expense of Land Improvements 1. | |||
Date | General Journal | Debit | Credit |
Dec. 31 | Depreciation expense (476000/17) | 28000 | |
Accumulated Depreciation - Land Improvements 1 | 28000 | ||
4. Record the year-end adjusting entry for depreciation expense of Land Improvements 2. | |||
Date | General Journal | Debit | Credit |
Dec. 31 | Depreciation expense (168000/20) | 8400 | |
Accumulated Depreciation - Land Improvements 2 | 8400 |
Requirea information [The following information applies to the questions displayed below.) On January 1, Mitzu Co....
Required information [The following information applies to the questions displayed below.] On January 1, Mitzu Co. pays a lump-sum amount of $2,750,000 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 $678,500, with a useful life of 20 years and a $75,000 salvage value. Land Improvements 1 is valued at $472,000 and is expected to last another 16 years with...
Required information (The following information applies to the questions displayed below.] On January 1, Mitzu Co. pays a lump-sum amount of $2,750,000 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 $678,500, with a useful life of 20 years and a $75,000 salvage value. Land Improvements 1 is valued at $472,000 and is expected to last another 16 years with...
On January 1, Mitzu Co. pays a lump-sum amount of $2,700,000 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 $708,000, with a useful life of 20 years and a $80,000 salvage value. Land Improvements 1 is valued at $413,000 and is expected to last another 14 years with no salvage value. The land is valued at $1,829,000. The company...
Che (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 $630,000, with a useful life of 20 years and a $75,000 salvage value. Land Improvements 1 is valued at $540,000 and is expected to last another 18 years with no...
t Chapter 10 Saved Help Required information (The following information applies to the questions displayed below.) On January 1, Mitzu Co. 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 $737,500, with a useful life ars and a $75,000 salvage value. Land Improvements 1 is valued at $413,000 and is expected to last...
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...
Having trouble to this, please show work Part 1 Part 2 Part 3 Required information The following information applies to the questions displayed below) On January 1, Mitzu Co. pays a lump-sum amount of $2,600,000 for land, Building 1, Building 2, and Land Improvements 1 Building 1has no value and will be demolished. Building 2 will be an office and is appraised at $644,000, with a useful life of 20 years and a $60,000 salvage value. Land Improvements 1 is...
Help Required information (The following information applies to the questions displayed below.) Onslow Co. purchased a used machine for $192,000 cash on January 2. On January 3. Onslow paid $8,000 to wire electricity to the machine and an additional $1,600 to secure it in place. The machine will be used for six years and have a $23,040 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of. 2....
Required Information The following information applies to the questions displayed below.) Onslow Co. purchases a used machine for $192,000 cash on January 2 and readies it for use the next day at a $10,000 cost. On January 3, it is installed on a required operating platform costing $2,000, and it is further readied for operations The company predicts the machine will be used for six years and have a $23.040 salvage value. Depreciation is to be charged on a straight...
[The following information applies to the questions displayed below. Onslow Co. purchases a used machine for $240,000 cash on January 2 and readies it for use the next day at a $8,000 cost. On January 3, it is installed on a required operating platform costing $1,600, and it is further readied for operations, The company predicts the machine will be used for six years and have a $28,800 salvage value. Depreciation is to be charged on a straight-line basis. On...