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 $120,000 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 2 of 3 $ 339,480 199,400 142 points Cost to demolish Building 1 Cost of additional land grading Cost to construct Building 3, having a usef of 25 years and a $102,000 salvage value Cost of new Land Improvements 2 having a 20-year useful life and no s 2,262,000 178,880 2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1 Print View transaction list References Journal entry worksheet Record the cost of the plant assets, paid in cash. Note: Enter debits before credits General Journal Debit Credit Date Jan 01