On January $1,$ Mitzu Company pays a lump$-$sum amount of $$2,650,000$ for land, Building $1,$ Building $2,$ and Land Improvements $1.$ Building $1$ has no value and will be demolished. Building $2$ will be an office and is appraised at $$649,000,$ with a useful life of $20$ years and a $$85,000$ salvage value. Land Improvements $1$ is valued at $$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 $1$ $ $341,400$

Cost of additional land grading $195,400$

Cost to construct Building $3,$ having a useful life of $25$ years and a $$400,000$ salvage value $2,302,000$

Cost of new Land Improvements $2,$ having a $20-$year useful life and no salvage value $173,000$Required information

$[$The following information applies to the questions displayed below.$]$

On January $1,$ Mitzu Company pays a lump$-$sum amount of $$2,650,000$ for land, Bullding $1,$ Bullding $2,$ and Land

Improvements $1.$ Building $1$ has no value and will be demolished. Bullding $2$ will be an office and is appralsed at $$649,000,$

Wth a useful Iffe of $20$ years and a $$85,000$ salvage value. Land Improvements $1$ is valued at $$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 denolish Building $1$

Cost of additional land grading

cost to construct Bullding $3,$ having a useful life of $25$ years and a $$490,090$ salvage value

cost of new Land Improvenents $2,$ having a $28-$year useful life and no salvage value

Using the stralght$-$IIne method, prepare the December $31$ adjusting entrles to record depreclation for the first year these assets were

In use.

Journal entry worksheet

Record the year$-$end adjusting entry for the depreciation expense of Building

Note: Enter debits before credits.