12 rt 3 of 3 25 nts Required Information [The following information applies to the questions displayed below.] On January 1, Mitzu Company 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 $600,000, with a useful life of 20 years and a $85,000 salvage value. Land Improvements 1 is valued at $660,000 and is expected to last another 22 years with no salvage value. The land is valued at $1,740,000. The company also incurs the following additional costs Cost to demolish Building 1 Cost of additional land grading Cost to construct Building 3, having a useful life of 25 years and a $398,000 salvage value Cost of new Land Improvements 2, having a 20-year useful life and no salvage value Print References $ 347,400 193,400 2,242,000 173,000 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets were In use. View transaction list View journal entry worksheet No 1 Date December 31 General Journal Depreciation expense-Building 2 Accumulated depreciation-Building 2 2 December 31 Depreciation expense-Building 31 Accumulated depreciation-Building 3 3 December 31 Depreciation expense-Land improvements 1 Accumulated depreciation-Land improvements 1 4 December 31 Depreciation expense-Land improvements 2 Accumulated depreciation-Land improvements 2 Debit Credit