2 10 Part 3 of 3 points 03-21.30 eBook Required Information Problem 8-3A Asset cost allocation; straight-line depreciation LO C1, P1 (The following information applies to the questions displayed below] In January 2017, Mitzu Co. pays $2,800,000 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 $767,000, with a useful life of 20 years and a $85,000 salvage value. A lighted parking lot near Building 1 has Improvements (Land Improvements 1) valued at $472,000 that are expected to last another 16 years with no salvage value. Without the buildings and improvements, the tract of land is valued at $1,711,000. The company also incurs the following additional costs: Cost to demolish Building 1 Cost of additional land grading Cost to construct new building Building ), having a useful life of 25 years and a $398,000 salvage value Cost of new land improvements (Land Improvements 2) near Building 2 having & 20-year useful life and no salvage value $ 341,400 187,400 2,222,000 168,000 Ask References Problem 8-3A Part 3 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the 12 months of 2017 when these assets were in use. View transaction st Yew journal entry worksheet No Date Dec 31 General Journal Depreciation expense-Buiding 2 Accumulated deprecation-Building 2 Dec 31 Depreciation excense-Buiding Accumulated decreciation-Building B Debit Credit 28:225 28.225