Required information

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

On January $1,$ Mitzu Company pays a lump$-$sum amount of $$2,750,000$ 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 $$810,000,$

with a useful life of $20$ years and a $$85,000$ salvage value. Land Improvements $1$ is valued at $$300,000$ and is expected to

last another $10$ years with no salvage value. The land is valued at $$1,890,000.$ 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 $*2,242,000$

Cost of new Land Improvements $2,$ having a $20-$year useful life and no salvage value $168,000$

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

Journal entry worksheet

$1$

Record the cost of the plant assets, paid in cash.

Note: Enter debits before credits.