Chapter 10 Homework 6 Pantot Required Information The following information applies to the questions displayed below.) On January 1, Mitzu Co 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 $640,500, with a useful life of 20 years and a $80,000 salvage value. Land improvements 1 is valued at $610,000 and is expected to last another 20 years with no salvage value. The land is valued at $1799,500. The company also incurs the following additional costs. 5 pos $347.400 187.400 Cost to demolish Building 1 Cost of additional land grading Cost to construct Building 3. having a useful lite ot 25 years and a $398,000 walvage value Cost of new Land Inprovements 2 having a 20-year seal life and to salvage value 2,202,000 173,000 res 3. Using the straight-ine method, prepare the December 31 adjusting entries to record depreciation for the first year these assets were in use View on the Journal entry worksheet + Kacord the year and justing entry for the depreciation expense of Bulding 2 Da Dec 3