On January 1, 2020, Toretto Industries purchased land with 2 buildings and equipment for a total cost of $4,165,000. The company plans to keep Building 1, however will demolish Building 2. The appraised value of each individual asset are shown in the table below. The cost to demolish building 2 is $95,000.

Required

1. Complete the table below to allocate the correct cost to each asset.

2. Prepare the journal entry to record the purchase on January 1, 2020 assuming everything was paid in cash.