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Required information

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

On January $1,$ Mitzu Company pays a lump$-$sum amount of $$2,800,000$ for land, Building $1,$ Building $2,$ and Land Improvements $1.$ Building $1$ has no value and will be demolished. Building $2$ will be an office and is appraised at $$660,000,$ with a useful life of $20$ years and a $$70,000$ salvage value. Land Improvements $1$ is valued at $$540,000$ and is expected to last another $18$ years with no salvage value. The land is valued at $$1,800,000.$ The company also incurs the following additional costs.

Cost to demolish Building $1$

Cost of additional land grading

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

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

$$344,400189,400$

$2,262,000173,000$

$2.$ Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January $1.$

View journal entry worksheet

$\backslash$table$[[$No$,$Date,General Journal,Debit,Credit$],[1,$January $01,$Land,$1,800,000,],[,,$Building $2,,660,000],[,,$Land improvements $1,,],[,,$Building $3,,],[,,$Land improvements $2,,],[,,$Amortization expense,,$],[,,$Rent expense,,$],[,,$Cash,,$],[,,,,]]$