! Required Information [The following information applies to the questions displayed below.] On January 1, Mitzu Company pays a lump-sum amount of $2,650,000 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 $619,500, with a useful life of 20 years and a $70,000 salvage value. Land Improvements 1 is valued at $619,500 and is expected to last another 21 years with no salvage value. The land is valued at $1,711,000. 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 $ 346,400 189,400 2,222,000 178,000 2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1. Answer is complete but not entirely correct. No General Journal Credit Date January 01 1 Land Building 2 Building 3 Land improvements 1 Land improvements 2 Cash Debit 1,711,000 556,500 2,222,000 556,500 178,000 2,650,000