Required information [The following information applies to the questions displayed below] On January 1, Mitzu Co. pays a lump-sum amount of $2,750,000 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 $708,000, with a useful life of 20 years and a $85,000 salvage value. Land Improvements 1 is valued at $354,000 and is expected to last another 12 years with no salvage value. The land is valued at $1,888,000. 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 $ 346,400 193,400 2,262,000 178,000 3. Using the straight-line method, prepare the December 31 adjusting entries to record deprecia 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 Dec 31 General Journal Debit Credit