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, 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 $644,000, with a useful life 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 $1,736,000. 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 $392,000 salvage value Cost of new Land Improvements 2, having a 20-year useful life and no salvage value 2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1. Answer is complete but not entirely correct. $ 328,400 175,400 2,202,000 164,000 2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1. Answer is complete but not entirely correct. No Date 1 January 01 Land Building 2 Building 3 Land improvements 1 Land improvements 2 Cash General Journal Debiti Credit 2,600,000 644,000 2,202,000 420,000 164,000 5,768,800 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets were in use. No Date Answer is not complete. General Journal Debit Credit December 31 Depreciation expense-Building 2 28,200 Accumulated depreciation-Building 2 28,200 2 December 31 Depreciation expense Building 3 Accumulated depreciation Building 3 3 December 31 Depreciation expense-Land improvements 1 Accumulated depreciation-Land improvements 1 420,000 42,000 4 December 31 Depreciation expense-Land improvements 2 164,000 Accumulated depreciation-Land improvements 2 164,000