On January Mitzu Company pays a lumpsum amount of $ for land, Building Building and Land Improvements Building has no value and will be demolished. Building will be an office and is appraised at $ with a useful life of years and a $ salvage value. Land Improvements is valued at $ and is expected to last another years with no salvage value. The land is valued at $ The company also incurs the following additional costs.
Cost to demolish Building $
Cost of additional land grading
Cost to construct Building having a useful life of years and a $ salvage value
Cost of new Land Improvements having a year useful life and no salvage value
Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January
