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 $720,000, with a useful life of 20 years and a $85,000 salvage value. Land Improvements 1 is valued at $420,000 and is expected to last another 14 years with no salvage value. The land is valued at $1,860,000 The company also incurs the following additional costs. Part 3 of 3 339,400 Cost to demolish Building 1 Cost of additional land grading Cost to construct Building 3, having auseful 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 195,400 142 2,262,000 polnts 178,000 eBook 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets we in use. Print View transaction list References Journal entry worksheet 4 1 2 3 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 CO