On January 1, Mizu Co pays a lump sum amount of $2,750,000 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 $610,000, with a useful life of 20 years and a $80,000 salvage value. Land improvements 1 is valued at $671,000 and is expected to last another 22 years with no salvage value. The land is valued at $1769,000. 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 20-year useful life and no salvage value $ 339,400 185,400 2,222,000 168,000 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets were in use. View transaction list Journal entry worksheet 2 3 4 Record the year-end adjusting entry for the depreciation expense of Building 2. Note: Enter debits before credits General Journal Debit Credit Date Dec 31 Record entry Clear entry View general Journal Journal entry worksheet Record the year-end adjusting entry for the depreciation expense of Land Improvements 1. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal Journal entry worksheet Record the year-end adjusting entry for the depreciation expense of Land Improvements 2. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal