6 Required information (The following information applies to the questions displayed below.) Part 3 of 3 1.92 points On January 1, Mitzu Company pays a lump-sum amount of $2,750,000 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 $450,000 and is expected to last another 15 years with no salvage value. The land is valued at $1,830,000. The company also incurs the following additional costs. eBook 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 $ 348,400 195,400 2,222,000 173,000 Print 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets were in use. References View transaction list Journal entry worksheet Record the year-end adjusting entry for the depreciation expense of Building 2. Note: Enter debits before credits. Date General Journal Debit Credit December 31 Record entry Clear entry View general Journal