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 $823,500, with a useful life of 20 years and a $75,000 salvage value. Land Improvements 1 is valued at $274,500 and is expected to last another 9 years with no salvage value. The land is valued at $1,952,000. 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 $ 339,400 187,400 2,262,000 173,000 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets in use. View transaction list Journal entry worksheet < 2 3 4 Record the year-end adjusting entry for the depreciation expense of Building 3. Note: Enter debits before credits. Date December 31 General Journal Debit Credit Clear entry View general journal Record entry