On January 1, Mitzu Company pays a lump-sum amount of $2,600,000 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 $570,000, with a useful life of 20 years and a $85,000 salvage value. Land Improvements 1 is valued at $570,000 and is expected to last another 19 years with no salvage value. The land is valued at $1,860,000. The company also incurs the following additional costs. Cost to demolish Building 1 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 $342,400185,4002,262,000178,000 Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1