50.1K

Verified Solution

Link Copied!

Accounting Practice Problem 6

[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 $678,500, 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 $1,858,500. The company also incurs the following additional costs.

Cost to demolish Building 1	$	346,400
Cost of additional land grading		191,400
Cost to construct Building 3, having a useful life of 25 years and a $400,000 salvage value		2,242,000
Cost of new Land Improvements 2 having a 20-year useful life and no salvage value		168,000

Required information in use. View transaction list Journal entry worksheet 2 Record the year-end adjusting entry for the depreciation expense of Building Note: Enter debits before credits. General Journal Debit Credit Date Dec 31 1 1. NNNN & Record entry Clear entry View general journal Required information in use. View transaction list Journal entry worksheet Record the year-end adjusting entry for the depreciation expense of Building Note: Enter debits before credits. Date General Journal Debit Dec 31 Record entry Clear entry View general journal use. View transaction list Journal entry worksheet

Answer & Explanation Solved by verified expert

See Answer