25 [The following information applies to the questions displayed below.] On January 1, Mitzu Co. pays a lump-sum amount of $2,700,000 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 $708,000, with a useful life of 20 years and a $90,000 salvage value. Land Improvements 1 is valued at $501,500 and is expected to last another 17 years with no salvage value. The land is valued at $1,740,500. The company also incurs the following additional costs. Part 2 of 3 $ 3.44 points 343, 400 191,400 Cost to demolish Building 1 Cost of additional land grading Cost to construct Building 3, having a useful life of 25 years and a $400,000 salvage value Cost of new Land Improvements 2 having a 20-year useful life and no salvage value 2,282,000 168,000 Problem 8-3A (Algo) Part 2 2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1. > Answer is not complete. No Date General Journal Debit Credit 1 Jan 01 Land Building 2 Building 3 Land improvements 1 Land improvements 2 Cash