Required information [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 Land Improvements 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 to last another 12 years with no salvage value. The land is valued at $1736,000. 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 $392,000 salvage value Cost of new Land Improvements 2, having a 20-year useful life and no salvage value 2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1 $ 328,400 175,400 2,202,000 164,000
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- Required Information [The following information applies to the questions dlisplayed below.] On January 1, Mitzu Co. pays a lump-sum amount of $2,600,000 for land, Bulding 1. Bullding 2. and Land Improvements 1. Building 1 has no value and will be demolished. Building 2 will be an office and is appralsed at $780,000, with a useful life of 20 years and a $80,000 salvage value. Land Improvements 1 Is valued at $420,000 and is expected to last another 14 years with no salvage value. The land is valued at $1,800,000. The company also Incurs the following additional costs. $ 343,400 191,400 Cost to denolish Building 1 Cost of additional land grading Cost to construct Building 3, having a useful life of 25 years and a $482,000 salvage value Cost of new Land Improvenents 2 having a 28-year useful life and no salvage value 2,222,809 178,000 2 Prepare a single journal entry to record all the Incurred costs assuming they are pald In cash on January 1. Vlew transaction let Journal entry worksheet…Required Information (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 Land Improvements 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 to last another 12 years with no salvage value. The land is valued at $1,736,000. 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 $392,000 salvage value Cost of new Land Improvements 2, having a 20-year useful life and no salvage value $ 328,400 175,400 2,202,000 164,000 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets were in use. View…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, Bulding 1. Bullding 2 and Land Improvements 1. Bulding 1 has no value and will be demolished. Building 2 will be an office and is appralsed at $780,.000, with a useful life of 20 years and a $80,000 salvage value. Land Improvements 1 Is valued at $420.000 and is expected to last another 14 years with no salvage value. The land is valued at $1,800,000. The company also incurs the following additional costs. $ 343,488 Cost to denolish Building 1 Cost of additional land grading Cost to construct Building 3, having a useful life of 25 years and a $482,000 salvage value Cost of new Land Improvenents 2 having a 20-year useful life and no salvage value 191,400 2,222,000 178,889 Required: 1. Allocate the costs Incurred by Mitzu to the appropriate columns and total each column. Percent of Total Allocation of purchase price Appraised…
- [The following information applies to the questions displayed below.] On January 1, Mitzu Company 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 $826,000, with a useful life of 20 years and a $75,000 salvage value. Land Improvements 1 is valued at $383,500 and is expected to last another 13 years with no salvage value. The land is valued at $1,740,500. 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 $400,000 salvage value Cost of new Land Improvements 2, having a 20-year useful life and no salvage value 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets were in use. View transaction list Journal entry worksheet 1 2 3 4 $ 343,400…[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 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 $75,000 salvage value. Land Improvements 1 is valued at $427,000 and is expected to last another 14 years with no salvage value. The land is valued at $1,830,000. 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 $398,000 salvage value Cost of new Land Improvements 2, having a 20-year useful life and no salvage value Problem 8-3A (Algo) Part 1 Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column. Allocation of Purchase Price Land Building 2 Land Improvements 1 Totals Purchase…[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 Land Improvements 1. Building 1 has no value and will be demolished. Building 2 will be an office and is appraised at $767,000, with a useful life of 20 years and a $80,000 salvage value. Land Improvements 1 is valued at $383,500 and is expected to last another 13 years with no salvage value. The land is valued at $1,799,500. 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 $400,000 salvage value Cost of new Land Improvements 2, having a 20-year useful life and no salvage value $ 346,400 193,400 2,282,000 173,000 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets were in use. View transaction list…
- [The following information applies to the questions displayed below.] 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 $840,000, with a useful life of 20 years and a $90,000 salvage value. Land Improvements 1 is valued at $330,000 and is expected to last another 11 years with no salvage value. The land is valued at $1,830,000. 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 $400,000 salvage value Cost of new Land Improvements 2, having a 20-year useful life and no salvage value 2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1. $ 344,400 189,400 2,242,000 178,000Biliran Company incurred the following costs at the beginning of the current year: Cost of land 1,000,000 Cost of building Remodelling and repairs prior to occupancy 4,000,000 500,000 Escrow fee 100,000 Clearing, levelling and landfill Property tax for period prior to acquisition Real estate commission 250,000 150,000 300,000 What is the cost of building? a. 4,500,000 b. 4,740,000 C. 4,800,000 d. 4,940,000Required information [The following information applies to the questions displayed below.] Hero Sandwich Shop had the following long-term asset balances as of January 1, 2024: Land Building Equipment Patent Cost $86,000 451,000 227,900 205,000 Accumulated Depreciation Book Value $86,000 288,640 179,700 123,000 • Hero purchased all the assets at the beginning of 2022. • The building is depreciated over a 10-year service life using the double-declining-balance method and estimating no residual Land Building Equipment Patent 0 value. • The equipment is depreciated over a 9-year service life using the straight-line method with an estimated residual value of $11,000. HERO SANDWICH SHOP December 31, 2024 $(162,360) (48,200) (82,000) • The patent is estimated to have a five-year useful life with no residual value and is amortized using the straight-line method. • Depreciation and amortization have been recorded for 2022 and 2023 (first two years). 3. Calculate the book value for each of the…
- Required information [The following information applies to the questions displayed below.] Shahia Company bought a building for $79,000 cash and the land on which it was located for $123,000 cash. The company paid transfer costs of $13,000 ($6,000 for the building and $7,000 for the land). Renovation costs on the building before it could be used were $27,000. Required: 1. Prepare the journal entry to record the purchase of the property, including all relevant expenditures. Assume that all transactions were for cash and that all purchases occurred at the start of the year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list View journal entry worksheet No 1 Transaction a Land Building General Journal Debit Credit16. On April 27, 2021, BatoBatoPik purchased for P6,000,000 a warehouse building and the land on which it is located. The following data were available concerning the property: Current Appraised Value Original Cost Land P2,200,000 P1,800,000 Warehouse P3,300,000 P3,000,000 Total P5,500,000 P4,800,000 At what amount should the warehouse be recorded?Can please get help with practice question 5.6 with a quick explaination of how? Required information Skip to question [The following information applies to the questions displayed below.] 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 Required: 1. Allocate the…