Required information [The following information applies to the questions displayed below.] On January 1, Mitzu Company 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 $549,000, with a useful life of 20 years and a $85,000 salvage value. Land Improvements 1 is valued at $579,500 and is expected to last another 19 years with no salvage value. The land is valued at $1,921,500. The company alsoincurs the following additional costs. Cost to denolish Building 1 Cost of additional land grading CosttoconstructBuilding3,havingausefullifeof25yearsanda$398,000salvagevalue187,400$347,400222,000 Cost of new Land Inprovements 2 , having a 20-year useful life and no salvage value 168,000 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets iwere in use. 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