Required Information The following Information applies to the questions displayed below] On January 1, Mitzu Co. pays a lump-sum amount of $2600,000 for land, Building 1, Bullding 2, and Land Improvements 1 Bulding 1 has no value and will be demollshed. Bullding 2 will be an office and Is appralsed at $644,000, with a useful Iife 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 $1736,000. The company also Incurs the following additional costs. S 328,400 175,400 Cost to denolish Bullding 1 Cost of additional land grading Cost to construct Building 3, having a useful life of 25 years and a $392,00e salvage value Cost of new Land Inprovements 2 having a 28-year useful life and no salvage value 2,282,eee 164,000 3. Using the straight-line method, prepare the December 31 adjusting entrles to record depreclation for the first year these assets were In use. Virw transacton Journal entry worksheet 1 3 4 Record the year-end adjusting entry for the depreciation expense of Building 2. Note: Enter debits betore credits Date General Journal Debit Credit Dec 31 Record ntry Clear ntry Mew g jo