Provide details on what you need help with along with a budget and time limit. Questions are posted anonymously and can be made 100% private.
Match with a Tutor
Studypool matches you to the best tutor to help you with your question. Our tutors are highly qualified and vetted.
Get Quality Help
Your matched tutor provides personalized help according to your question details. Payment is made only after you have completed your 1-on-1 session and are satisfied with your session.
In January 2013, 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 $823,500, with
a useful life of 20 years and an $75,000 salvage value. A lighted parking lot near Building 1 has improvements
(Land Improvements 1) valued at $305,000 that are expected to last another 10 years with no salvage value.
Without the buildings and improvements, the tract of land is valued at $1,921,500. The company also incurs the
following additional costs:
Cost to demolish Building 1
Cost of additional land grading
Cost to construct new building (Building 3), having a useful life
of 25 years and a $402,000 salvage value
Cost of new land improvements (Land Improvements 2) near Building 2
a 20-year useful life and no salvage value
Total costs
Allocation of
purchase price
Appraised valu
e
Percent o
f total
appraized
value
$
346,400
189,400
2,222,000
having
173,000
7,965,799
X Total cos
t of
acquisition
= Apportioned cos
t
Land
x
=
Building 2
x
=
Land improvement
s1
x
=
Total
Land
Purchase Price
Demolition
Land grading
New Building
(Construction
cost)
New Improvem
ents cost
Buildin
g 2
Building
3
Land Improveme
nts 1
Land Improveme
nts 2
Totals
2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on
January 1, 2013.
Journal Entry Worksheet
A. Record the costs of the plant assets.
Journal Entry Worksheet
Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the 12
months of 2013 when these assets were in use.
A. Record the year-end
B. Record the year-end
C. Record the year-end
Improvements 1
D. Record the year-end
Improvements 2.
adjusting entry for the depreciation expense of Building 2
adjusting entry for the depreciation expense of Building 3
adjusting entry for the depreciation expense of Land
adjusting entry for the depreciation expense of Land
Purchase answer to see full
attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.
Would you like to help your fellow students? Are you in need of an additional source of income? Apply to become a tutor on Studypool! Our best tutors earn over $7,500 each month!