On January $1,$ Mitzu Company pays a lump$-$sum amount of $$2,800,000$ for land, Building $1,$ Building $2,$ and Land Improvements $1.$ Building $1$ has no value and will be demolished. Building $2$ will be an office and is appraised at $$649,000,$ with a useful life of $20$ years and a $$80,000$ salvage value. Land Improvements $1$ is valued at $$472,000$ and is expected to last another $16$ 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

$$342,400$

Cost to construct Building $3,$ having a useful life of $25$ years and a $$400,000$ salvage value

Cost of new Land Improvements $2,$ having a $20-$year useful life and no salvage value

$189,400$

$2,282,000$

$173,000$

$3.$ Using the straight$-$line method, prepare the December $31$ adjusting entries to record depreciation for the first year these assets were in use.

$\backslash$table$[[$No$,$Date,General Journal,Debit,$],[,1,$December $31,$Depreciation expense$-$Building $2,],[,,$Accumulated depreciation$-$Building $2,,],[,,$December $31,$Depreciation expense$-$Building $3,],[,,$Accumulated depreciation$-$Building $3,,],[,$December $31,$Depreciation expense$-$Land improvements $1,,],[,,$Accumulated depreciation$-$Land improvements $1,,],[,$December $31,$Depreciation expense$-$Land improvements $2,,],[,,$Accumulated depreciation$-$Land improvements $2,,]]$