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 $600,000, with a useful life of 20 years and a $70,000 salvage value. Land Improvements 1 is valued at $600,000 and is expected to last another 20 years with no salvage value. The land is valued at $1,800,000. The company also incurs the following additional costs.

Cost to demolish Building 1	$ 343,400
Cost of additional land grading	189,400
Cost to construct Building 3, having a useful life of 25 years and a $400,000 salvage value	2,222,000
Cost of new Land Improvements 2, having a 20-year useful life and no salvage value	168,000

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

Journal entry worksheet Record the cost of the plant assets, paid in cash. Note: Enter debits before credits. Journal entry worksneet 1 Record the year-end adjusting entry for the depreciation expense of Land Improvements 2 . Note: Enter debits before credits. Journal entry worksheet Record the year-end adjusting entry for the depreciation expense of Building 3. Note: Enter debits before credits. Journal entry worksneet Record the year-end adjusting entry for the depreciation expense of Land Improvements 1 . Note: Enter debits before credits. Journal entry worksheet Record the year-end adjusting entry for the depreciation expense of Building 2. Note: Enter debits before credits