The following information applies to the questions displayed below] In January 2015, Mitzu Co. pays $2,750,000 for a tract of land with two buildings on it. It plans to demolish Building 1 and build a new store in its place. Building 2 will be a company office; it is appraised at $540,000, with a useful life of 20 years and a $80,000 salvage value. A lighted parking lot near Bullding 1 has improvements (Land Improvements 1) valued at $540,000 that are expected to last another 18 years with no salvage value. Without the buildings and improvements, the tract of land is valued at $1,920,000. The company also incurs the following additional costs: Cost to demolish Building 1 342400
Cost of additional land grading 193400
Cost to construct new building (Building 3), having a useful life
of 25 years and a $402,000 salvage value 2222000
Cost of new land improvements (Land Improvements 2) near Building 2
having a 20-year useful life and no salvage value 168000
Required:
1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column. (Round your percentage answers to the nearest whole number.)
2. Prepare ournal entery to record all the incurred costs assuming they are paid in cash on anuary 1 2015.
3. Using straight line method prepare December 31 adusting entries to record depreciation for 12 months of 2015 when these assets were in use.