In January 2017, Mitzu Co. pays $2,750,000 for a tract of land with two buildings on it. It plans to demolish Building 1 and build a new store in its place. Building 2 will be a company office; it is appraised at $690,000, with a useful life of 20 years and a $75,000 salvage value. A lighted parking lot near Building 1 has improvements (Land Improvements 1) valued at $540,000 that are expected to last another 18 years with no salvage value. Without the buildings and improvements, the tract of land is valued at $1,770,000. The company also incurs the following additional costs: Cost to demolish Building 1 $ 341,400 Cost of additional land grading 191,400 Cost to construct new building (Building 3), having a useful life of 25 years and a $400,000 salvage value 2,242,000 Cost of new land improvements (Land Improvements 2) near Building 2 having a 20-year useful life and no salvage value 173,000 Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column. 2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1, 2017. 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the 12 months of 2017 when these assets were in use.