Required information

Problem $8-3$A $($Algo$)$ Asset cost allocation; straight$-$line depreciation LO C$1,$ P$1$

$[$The following information applies to the questions displayed below.$]$

On January $1,$ Mitzu Company pays a lump$-$sum amount of $$2,650,000$ 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 $$579,500,$

with a useful life of $20$ years and a $$85,000$ salvage value. Land Improvements $1$ is valued at $$579,500$ and is expected to

last another $19$ years with no salvage value. The land is valued at $$1,891,000.$ The company also incurs the following

additional costs.

Cost to demolish Building $1$

Cost of additional land grading

$$342,400$

Cost to construct Building $3,$ having a useful life of $25$ years and a $$400,000$ salvage value $189,400$

Cost of new Land Improvements $2,$ having a $20-$year useful life and no salvage value

$173,000$

oblem $8-3$A $($Algo$)$ Part $2$

Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January $1.$

Answer is not complete.