Required informationProblem 8-3A (Static) Asset cost allocation; straight-llne depreclation LO C1, P1[The following information applies to the questions displayed below.]On January 1, Mitzu Company pays a lump-sum amount of $2,600,000 for land, Building 1, Building 2, and LandImprovements 1. Building 1 has 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 valued at $420,000 and is expected tolast another 12 years with no salvage value. The land is valued at $1,736,000. The company also incurs the followingadditional costs.Cost to demolish Building 1Cost of additional land gradingCost to construct Building 3, having a useful life of 25 years and a $392, 000 salvage valueCost of neW Land Improvements 2, having a 20-year useful life and no salvage value$ 328, 400175, 4002, 202, 000164, 000 Required:1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column.Percent ofAppraisedValueTotalAppraisedValueTotal Cost ofAllocation of Purchase PriceApportioned CostAcquisitionLand%3!Building 2Land Improvements 1%3DTotals240%$2410LandLandLandBuilding 2Building 3Improvements 1Improvements 2Purchase PriceDemolitionLand gradingNew building (Construction cost)New improvementsTotals24

In this question, we have to calculate straight-line depreciation.

Answered: On January 1, Mitzu Company pays a…

On January 1, Mitzu Company pays a lump-sum amount of $2,6C Improvements 1. Building 1 has no value and will be demolished.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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4. On January 1, Mitzu Company 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 $793,000, with a useful life of 20 years and a $70,000 salvage value. Land Improvements 1 is valued at $305,000 and is expected to last another 10 years with no salvage value. The land is valued at $1,952,000. The company also incurs the following additional costs. Cost to demolish Building 1 $ 348,400 Cost of additional land grading 187,400 Cost to construct Building 3, having a useful life of 25 years and a $400,000 salvage value 2,202,000 Cost of new Land Improvements 2, having a 20-year useful life and no salvage value 178,000 Required:1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column.
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The home was acquired for $83,000 in 2005. On May 12, 2021, the Arcs installed new fixtures (7-year recovery period) at a cost of $3,400. They wish to maximize the cost recovery on the new fixtures but make no elections. how do I calculate Special depreciation allowance for qualified property Rental income Insurance Interest expense Property taxes Miscellaneous expenses $16,100 800 5,750 1,200 500
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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 $540,000, with a useful life of 20 years and a $80,000 salvage value. Land Improvements 1 is valued at $600,000 and is expected to last another 20 years with no salvage value. The land is valued at $1,860,000. The company also incurs the following additional costs. Cost to demolish Building 1 Cost of additional land grading Cost to construct Building 3, having a useful life of 25 years and a $402,000 salvage value Cost of new Land Improvements 2 having a 20-year useful life and no salvage value View transaction list Journal entry worksheet 2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1 < Record the cost of the plant assets, paid in cash. Note: Enter debits before credits. Date Jan 01 General Journal $ 343,400…
On June 1, 2021, Nico places in service a new automobile that cost $40,000. The car is used 60% for business and 40% for personal use. (Assume this percentage is maintained for the life of the car.) Nico does not take additional first-year depreciation. Determine the cost recovery deduction for 2021. O a. $4,800 O b. $1,896 Oc. $1,776 Od. $6,000
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Can I please get help with this question and a quck explaination of how?(5.7) On January 1, Mitzu Company 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 $780,000, with a useful life of 20 years and a $75,000 salvage value. Land Improvements 1 is valued at $360,000 and is expected to last another 12 years with no salvage value. The land is valued at $1,860,000. The company also incurs the following additional costs. Cost to demolish Building 1 $ 348,400 Cost of additional land grading 195,400 Cost to construct Building 3, having a useful life of 25 years and a $398,000 salvage value 2,242,000 Cost of new Land Improvements 2, having a 20-year useful life and no salvage value 168,000
Jenny constructed a building for use as a residential rental property. The cost of the building was $164,976, and it was placed in service on August 1, 1998. The building has a 27.5-year MACRS life. What is the amount of depreciation on the building for 2020 for tax purposes? a.$6,547 b.$6,000 c.$3,000 d.$2,250 e.None of these choices are correct.