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 $780,000, with a useful life of 20 years and a $70,000 salvage value. Land Improvements 1 is valued at $330,000 and is expected to last another 11 years with no salvage value. The land is valued at $1,890,000. The company also incurs the following additional costs. Cost to demolish Building 1 $ 344,400 Cost of additional land grading 193,400 Cost to construct Building 3, having a useful life of 25 years and a $398,000 salvage value 2,242,000 Cost of new Land Improvements 2, having a 20-year useful life and no salvage value 168,000 Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1. View transaction list View Journal entry worksheet 1 SELLE No Date General Journal Debit Credit 1 January 01 Land Building 2 Building 3 Land improvements 1 2,242,000 Journal entry worksheet