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 $600,000, with a useful life of 20 years and a $85,000 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 Cost of additional land grading 348,400 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 Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets wer use. Journal entry worksheet Record the year-end adjusting entry for the depreciation expense of Building 2. Note: Enter debits before credits