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On January $1,$ Mitzu Company pays a lump$-$sum amount of $$2,700,000$ for land, Building $1,$ Building $2,$ and Land Improvements $1.$ Building $1$ has no value and will be demolished. Building $2$ will be an office and is appraised at $$600,000,$ with a useful life of $20$ years and a $$75,000$ salvage value. Land Improvements $1$ is valued at $$660,000$ and is expected to last another $22$ years with no salvage value. The land is valued at $$1,740,000.$ The company also incurs the following additional costs.

Cost to demolish Building $1$ $ $347,400$

Cost of additional land grading $189,400$

Cost to construct Building $3,$ having a useful life of $25$ years and a $$400,000$ salvage value $2,302,000$

Cost of new Land Improvements $2,$ having a $20-$year useful life and no salvage value $178,000$

$2.$ Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January $13.$ Using the straight$-$line method, prepare the December $31$ adjusting entries to record depreciation for the first year these assets were in use.