Chapter 8 Problem(s) of the Week Help 3 art 2 of 3 Required information Problem 8-3A 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 $2,800,000 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 $579,500, with a useful life of 20 years and a $70,000 salvage value. Land improvements is valued at $579,500 and is expected to last another 19 years with no salvage value. The land is valued at $1,891,000. The company also incurs the following additional costs. 5 nits eBook Print ferences $ 345,400 107.400 Cost to demolish Building 1 Coat of additional land grading Coat to construct Building ), having a useful lite of 25 years and a $398,000 salvage value Cost of new Land Improvemente 2 having a 20-year useful life and no salvage value 2,222,000 173,000 Problem 8-3A Part 2 2. Prepare a single Journal entry to record all the incurred costs assuming they are paid in cash on January 1 View transaction list Als