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Company ABC purchased a building on $1/1/2022.$ The purchase price of the building was $$1,000,000.$ The company decided to demolish the building, which cost $$200,000,$ and built a new structure which cost $$2,000,000$ to build. Construction was completed on $6/1/2022.$ The company assumes that the building will have a $40$ year useful life and no salvage value. Company ABC uses the straight$-$line method to account for depreciation.

$*$ALL journal entries should take the form:

Dr$.$ Account $($Y$)$ $$$

Cr$.$ Account $($Y$)$ $$$

A$.$ Record the journal entry for the acquisition of the building on $1/1/2022$

B$.$ What is the balance of the newly constructed building on $6/1/2022?$ There are NO adjusting entries that occur over the $5$ month period because the building is not in service or being used

C$.$ Record any required journal entries for the building on $12/31/2022.$ Assume this is the close of the fiscal year for Company ABC

D$.$ On January $1,2023,$ Company ABC learns the building has caught on fire because the employees partied too hard on New Year$$s Eve. As a result, the company estimates that the net book value of the asset needs to be reduced by $50\%.$ Further, the company now estimates that the building will only have a remaining useful life of $20$ years. Record the journal entry on January $1$

E$.$ Record any required journal entries for the building on $12/31/2023.$ Assume this is the close of the fiscal year for Company ABC

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