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Required information [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 $767,000, with a useful life of 20 years and a $70,000 salvage value. Land Improvements 1 is valued at $442,500 and is expected to last another 15 years with no salvage value. The land is valued at $1,740,500. The company also incurs the following additional costs $ 338,400 193,400 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 2,282,000 178,000 Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column Allocation of purchase price Appraised Percent of Total Appraised Value X Total cost of acquisition Apportioned Cost Value . x Land Building 2 Land Improvements 1 Totals Land Building 2 Building 3 Land Improvements 1 Land Improvements Purchase Price Demolition Land grading New building Construction cost) New improvements Totals 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 has no value and will be demolished Building 2 will be an office and is appraised at $767,000, with a useful life of 20 years and a $70,000 salvage value. Land Improvements 1 is valued at $442,500 and is expected to last another 15 years with no salvage value. The land is valued at $1,740,500. The company also incurs the following additional costs $ 338,400 193,400 Cost to demolish Building 1 Cost of additional land gradine 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 2,282,000 178,000 Journal entry worksheet > 2. 3 4 Record the year-end adjusting entry for the depreciation expense of Building 2. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal Journal entry worksheet