On January $1,$ Mitzu Company pays a lump$-$sum amount of $$2,700,000$ for land, Building $1,$ Building $2,$ and Land Improvements $1.$ Building $1$ has no value and will be demolished. Building $2$ will be an office and is appraised at $$560,500,$ with a useful life of $20$ years and a $$90,000$ salvage value. Land Improvements $1$ is valued at $$590,000$ and is expected to last another $20$ years with no salvage value. The land is valued at $$1,799,500.$ The company also incurs the following additional costs.

Cost to demolish Building $1$

$$340,400$

Cost of additional land grading

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

$189,400$

$2,262,000$

$178,000$

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

Journal entry worksheet

$1$

Record the cost of the plant assets, paid in cash.

Note: Enter debits before credits.