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 near Building 1 has
improvements (Land Improvements 1) valued at $420,000 that are
expected to last another 12 years with no salvage value. Without
the buildings and improvements, the tract of land is valued at
$1,736,000. The company also incurs the following additional
costs:
Cost to demolish Building 1 | $ | 328,400 | |
Cost of additional land grading | 175,400 | ||
Cost to construct new building (Building 3), having a useful life of 25 years and a $392,000 salvage value | 2,202,000 | ||
Cost of new land improvements (Land Improvements 2) near Building 2 having a 20-year useful life and no salvage value | 164,000 | ||
Problem 8-3A Part 2
2. Prepare a single journal entry to record all
the incurred costs assuming they are paid in cash on January 1,
2017.
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 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...
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...
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...
Kindly please solve this thank you
Land Land Land Building 2 Building 3 Improvements 1 Improvements 2 Purchase Price Demolition Land grading New building (Construction cost) New improvements Totals ! 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...
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...
Required information [The following information applies to the questions displayed below.] Part 1 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 $660,000, with a useful life of 20 years and a $90,000 salvage value. Land Improvements 1 is valued at $420,000 and is expected to last...