On January $1,$ Mitzu Company pays a lump$-$sum amount of $$2,650,000$ for land, Building $1,$ Building $2,$ and Land Improvements $1.$ Building $1$ has no value and will be demolished. Building $2$ will be an office and is appraised at $$640,500,$ with a useful life of $20$ years and a $$90,000$ salvage value. Land Improvements $1$ is valued at $$518,500$ and is expected to last another $17$ years with no salvage value. The land is valued at $$1,891,000.$ The company also incurs the following additional costs.

Cost to demolish Building $1$

Cost of additional land grading

$$340,400$

$195,400$

$2,222,000$

$178,000$

$2.$ Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January $1.$

View journal entry worksheet

$\backslash$table$[[,$No$,$Date,General Journal,Debit,Credit$],[i,1,$January $01,$Land improvements $1,,],[,,$Land improvements $2,,],[,,$Building $2,,]]$