54 Problem 8-3A (Algo) Asset cost allocation; straight-line depreciation LO C1, P1 [The following information applies to the questions displayed below.] On January 1, Mitzu Co. pays a lump-sum amount of $2,600,000 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 $720,000, with a useful life of 20 years and a $80,000 salvage value. Land Improvements 1 is valued at $390,000 and is expected to last another 13 years with no salvage value. The land is valued at $1,890,000. The company also incurs the following additional costs. Cost to denolish Building 1 Cost of additional land grading Cost to construct Building 3, having a useful life of 25 years and a $402,000 salvage value: Cost of new Land Improvements 2 having a 20-year useful life and no salvage value $ 344,400 189,400 2,282,000 173,000. 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. 25 Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Cost to construct Building 3, having a useful life of 25 years and a $402,000 salvage value Coat of new Land Inprovenenta 2 having a 20-year useful life and no salvage value 2,262,000 173,000 Return to question Searen BS4 at cot allocation. cost allocation Part 2 of 3 44 022841 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. ars to demolish ed at sear Building 1 ther 12 years at $1,736,000 Answer is not complete. No Data Jan 01 General Journal Debil Credit Land Building 2 Building 3 Land improvements 1 Land improvements 2 Cash 000000 173.0000 2,282,000 344,400 173,000 4,862,400 328,400 175,400 2,202,000 364,000 ash on January