On January 1, Mitzu Company pays a lump-sum amount of $2,650,000 for land, Building 1, Building 2, and Land Improvements 1. Building thas 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 $75,000 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 $1,830,000. The company also incurs the following additional costs. Cost to denotish Building 1 Cost of additional land grading Cost to construct Building 3 , having a useful tife of 25 years and a $402,000 satvage yatue cost of new Land Improvements 2, having a 20 -year usefut life and no salvage value. \$ 346,400 193,400 2,222, eee 168,000 Problem 8-3A (Algo) Part 2 2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1. On January 1, Mitzu Company pays a lump-sum amount of $2,650,000 for land, Building 1, Building 2, and Land Improvements 1. Building thas 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 $75,000 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 $1,830,000. The company also incurs the following additional costs. Cost to denotish Building 1 Cost of additional land grading Cost to construct Building 3 , having a useful tife of 25 years and a $402,000 satvage yatue cost of new Land Improvements 2, having a 20 -year usefut life and no salvage value. \$ 346,400 193,400 2,222, eee 168,000 Problem 8-3A (Algo) Part 2 2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1