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-5um amount of $2,600,000 for land. Building 1, Building 2, and Land Improvements 1. Bullding 1 has no value and will be demolished. Building 2 will be an office and is appraised at $750,000. with a useful life of 20 years and a $70,000 salvage value. Land Improvements 1 is valued at $480,000 and is expected to last another 16 years with no salvage value. The land is valued at $1,770,000. The company also incurs the following additional costs. Coat to deaholish Buslding 1 coss of additional land grading Cost to construct Bullding 3, having a usoful. Ifo of 25 yoars and a 5400,000 salyage value cost of ned Land trprovements 2, having a 20year useful-11fe and no salvage value 534,400 189,400 2,202,000 133,000 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets were in use. Journal entry worksheet Fecord the rear-end adjusting entry for the depreciation experke of Bullaing 2