Required information Problem 8-3A Asset cost allocation; straight-line depreciation LO C1, P1 [The following information applies to the questions displayed below.) In January 2017, Mitzu Co. pays $2,650,000 for a tract of land with two buildings on it. It plans to demolish Building 1 and build a new store in its place. Building 2 will be a company office; it is appraised at $737,500, with a useful life of 20 years and a $75,000 salvage value. A lighted parking lot near Building 1 has improvements (Land Improvements 1) valued at $413,000 that are expected to last another 14 years with no salvage value. Without the buildings and improvements, the tract of land is valued at $1,799,500. The company also incurs the following additional costs: $ 340, 400 185, 400 Cost to demolish Building 1 Cost of additional land grading Cost to construct new building (Building 3), having a useful life of 25 years and a $402, 000 salvage value Cost of new land improvements (Land Improvements 2) near Building 2 having a 20- year useful life and no salvage value 2, 202, 000 173,000 2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1, 2017 View transaction list Journal entry worksheet Record the cost of the plant assets, paid in cash. Note: Enter debits before credits. / Debit Credit Date Jan 01 General Journal Land Building 2 Building 3 Land improvements 1 Land improvements 2 Cash Record entry Clear entry View general journal