Chec 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 $2,750,000 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 $579,500, with a useful life of 20 years and a $90,000 salvage value. Land Improvements 1 is valued at $518,500 and other 17 years with no salvage value. The land is valued at $1,952,000. The company also incurs the following additional costs. $ 339,400 193,400 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 2,262,000 178,000 Problem 8-3A Part 2 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 View journal entry worksheet Date General Journal Debit Credit No 1 Jan 01 Land Building 2 Building 3 Land improvements 1 Land improvements 2 Cash 2,750,000 579,500 2,262,000 178,000 6,288,000