Required information [The following information applies to the questions displayed below.] On January 1, Mitzu Co. 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 1is valued at $510,000 and is expected to last another 17 years with no salvage value. The land is valued at $1,830,000. The company also incurs the following additional costs. $ 344,400 193,400 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 2,262,000 178,000 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column. Allocation of purchase price Percent of Appraised Value Total Appraised Value X Total cost of acquisition Apportioned Cost Land Building 2 Land Improvements 1 Totals Land Building 2 Building 3 Land Improvements 1 Land Improvements 2 Purchase Price Demolition Land grading New building (Construction cost) New improvements Totals 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets were in use. View transaction list Journal entry worksheet 1 2 3 4 Record the year-end adjusting entry for the depreciation expense of Building 2. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal 1 Record the year-end adjusting entry for the depreciation expense of Building 2. 2 Record the year-end adjusting entry for the depreciation expense of Building 3. 3 Record the year-end adjusting entry for the depreciation expense of Land Improvements 1. 4 Record the year-end adjusting entry for the depreciation expense of Land Improvements 2