O Required Information Problem 10-3A 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 $2,650,000 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 $600,000, with a useful life of 20 years and a $80,000 salvage value. Land Improvements 1 is valued at $630,000 and is expected to last another 21 years with no salvage value. The land is valued at $1,770,000. The company also incurs the following additional costs. $ 339, 409 185,488 Cost to demolish Building 1 Cost of additional land grading Cost to construct Building 3, having a useful life of 25 years and a $402,80 salvage value Cost of new Land Improvements 2 having a 20-year useful life and no salvage value 2,262,899 173,800 Problem 10-3A Part 3 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets were in use. View transaction list Journal entry worksheet 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