Problem 8-3A Asset cost allocatlon; straight-line depreclation LO C1, P The following information applies to the questions displeyed below In January 2017, Mitzu Co. pays $2,750,000 for a tract of land with two buildings on It. It plans to demolish Building 1 and bulld a new store In its place. Building 2 wial be a company office: It Is appraised at $570,000, with a useful life of 20 years and a $80,000 salvage value. A ighted parking lot near Bullding 1 has Improvements (Land Improvements 1) valued at $690,000 that are expected to last another 23 years with no salvage value. Without the bulildings and improvements, the tract of land is valued at $1740,000. The company also Incurs the following additional costs ost to demolish Building 1 Cost of additional land grading coat to construct new building (Building 3), $ 348,400 193,400 having a uaeful life of 25 years and a $402,000 salvage value 2, 262,000 Cost of new land inprovements (Land Improvenents 2) near Building 2 having a 20-year useful life and no salvage value 173,000 Problem 8-3A Part 2 2. Prepare a single journal entry to record all the incurred costs assuming they are pald in cash on January 1,2017