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On January $1,$ Mitzu Company pays a lump$-$sum amount of $$2,600,000$ for land, Building $1,$ Building $2,$ and Land Improvements $1.$ Building $1$ has no value and will be demolished. Building $2$ will be an office and is appraised at $$644,000,$ with a useful life of $20$ years and a $$60,000$ salvage value. Land Improvements $1$ is valued at $$420,000$ and is expected to last another $12$ years with no salvage value. The land is valued at $$1,736,000.$ 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 $$392,000$ salvage value

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

$$328,400$

$175,400$

$2,202,000$

$164,000$

Using the straight$-$line method, prepare the December $31$ adjusting entries to record depreciation for the first year these assets were in use.

Journal entry worksheet

$1$

$2$

$3$

$4$

Record the year$-$end adjusting entry for the depreciation expense of Land Improvements $1.$

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$December $31,$Depreciation expense$-$Land improvements $1,,],[,$Accumulated depreciation$-$Land improvements $1,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$