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 2018, Mitzu Co. pays $2,750,000 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 $750,000, with a useful life of 20 years and a $85,000 salvage value. A lighted parking lot near Building 1 has improvements (Land Improvements 1) valued at $510,000 that are expected to last another 17 years with no salvage value. Without the buildings and improvements, the tract of land is valued at $1,740,000. The company also incurs the following additional costs: $ 348,400 185,400 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 $400,000 salvage value Cost of new land improvements (Land Improvements 2) near Building 2 having a 20-year useful life and no salvage value 2,282,000 173,000 Problem 8-3A Part 3 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the 12 months of 2018 when these assets were in use. View transaction list View journal entry worksheet No Date General Journal Debit Credit View transaction list View journal entry worksheet Date Debit Credit No 1 Dec 31 General Journal Depreciation expense-Building 2 Accumulated depreciationBuilding 2 Dec 31 Depreciation expense-Building 3 Accumulated depreciationBuilding 3 Dec 31 Depreciation expenseLand improvements 1 Accumulated depreciationLand improvements 1 4. Dec 31 Depreciation expenseLand improvements 2 Accumulated depreciationLand improvements 2