On January 1, 2018, Major Company pays a lump sum amount of $2,000,000 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 $1.440,000 with a useful life of 20 years and a salvare value of $200,000, Land improvements 1 is appraised at $240,000 with a useful life of 5 years and a salvage value of $40,000. The Land is appraised for $720,000. Major Company also incurs the following additional costs: Cost to Demolish Building 1 Cost of Additional Land Grading Cost to Construct Building 3 Cost to Construct Land improvements 2 $ 200,000 $ 60.000 $ 2,150,000 (useful life of 25 years and $150,000 salvage) $ 90,000 (useful life of 6 years and no salvage) 1. Prepare a table with the following column headings: Land, Building 1, Building 2, Building 3, Land improvements 1 and Laand improvements 2. Allocate the costs incurred by Major to the appropriate columns and total each column Lab 1 Solution Tab). 2. Prepare a single journal entry to record all of the incurred costs assuming they are paid on January 1, 2018 (Lab 1 Solution Tab), 3. Using the straight line method, prepare the December 31, 2018 adjusting entries to record the depreciation expense for the first year the assets were in use (lab 1 Solution Tab) ALLOCATION OF PURCHASE PRICE(") APPRAISED VALUE OF TOTAL APPORTIONED COST Building 1 Building 2 Land improvements 1 LAND BUILDING 1 BUILDING 2 BUILDING 3 LAND LAND IMPROVEMENTS 1 IMPROVEMENTS 2 TOTAL 1 Purchase price 11 Demolition and Grading 13 Construction Building 3 14 Construction. Land Imp 2 DATE ENTRY DEBIT CREDIT