Problem 8-3A (Algo) Asset cost allocation; straight-line depreciation LO C1, P1 [The following information applies to the questions displayed below.] 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. Bullding 2 will be an office and is appraised at $600,000, with a useful life of 20 years and a $75,000 salvage value. Land Improvements 1 is valued at $570,000 and is expected to last another 19 years with no salvage value. The land is valued at $1,830,000. The company also incurs the following additional costs. Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column. . 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. 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets were in use. 1 Record the year-end adjusting entry for the depreciation expense of Bullding 2. 2 Record the year-end adjusting entry for the depreciation expense of Bullding 3 . 3 Record the year-end adjusting entry for the depreciation expense of Land Improvements 1 . 4 Record the year-end adjusting entry for the depreciation expense of Land Improvements 2