Required Information

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

On January $1,$ Mitzu Company pays a lump$-$sum amount of $$2,600,000$ for land, Building $1,$ Bullding $2,$ and Land

Improvements $1.$ Building $1$ has no value and will be demolished. Bullding $2$ will be an office and is appralsed at $$619,500,$

With a useful Iffe of $20$ years and a $$85,000$ salvage value. Land Improvements $1$ is valued at $$590,000$ and is expected to

last another $20$ years with no salvage value. The land is valued at $$1,740,500.$ The company also incurs the following

additional costs.

Ising the straight$-$Iine method, prepare the December $31$ adjusting entries to record depreclation for the first year these assets were

se$.$

Journal entry worksheet

Record the year$-$end adjusting entry for the depreciation expense of Building

Note: Enter debits before credits.