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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 valuerr
Cost of new Land Improvements having a year useful life and no salvage value
Required:
Allocate the costs incurred by Mitzu to the appropriate columns and total each column.
