On January 1, Mitzu Co. pays a lump-sum amount of $2,700,000 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 $619,500, with a useful life of 20 years and a $80,000 salvage value. Land Improvements 1 is valued at $501,500 and is expected to last another 17 years with no salvage value. The land is valued at $1,829,000. The company also incurs the following additional costs. Cost to demolish Building 1 Cost of additional land grading Cost to construct Building 3, having a useful life of 25 years and a $402,000 salvage value. Cost of new Land Improvements 2 having a 20-year useful life and no salvage value $ 345,400 193,400 2,202,000 178,000 Problem 8-3A (Algo) Part 2 2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1. Journal entry worksheet < 1 2 3 4 Record the year-end adjusting entry for the depreciation expense of Building 2. Note: Enter debits before credits. Date Dec 31 General Journal Debit Credit Clear entry View general journal Record entry > Journal entry worksheet 1 2 3 4 Record the year-end adjusting entry for the depreciation expense of Building 3. Note: Enter debits before credits. Date Dec 31 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 Record the year-end adjusting entry for the depreciation expense of Land Improvements 1. Note: Enter debits before credits. Date Dec 31 General Journal Debit Credit Record entry Clear entry View general journal > Journal entry worksheet < 1 2 3 4 Record the year-end adjusting entry for the depreciation expense of Land Improvements 2. Note: Enter debits before credits. Date Dec 31 General Journal Debit Credit Record entry Clear entry View general journal >