Required information [The following information applies to the questions displayed below.) On January 1, Mitzu Co. pays a lump-sum amount of $2,650,000 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 $531,000, with a useful life of 20 years and a $85,000 salvage value. Land Improvements 1 is valued at $560.500 and is expected to last another 19 years with no salvage value. The land is valued at $1,858,500. The company also incurs the following additional costs. $ 347,400 191,400 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 2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1. No 1 Date Jan 01 Answer is complete but not entirely correct. General Journal Debit Credit Land 2,650,000 Building 2 531,000x Building 3 2,262,000 Land improvements 1 560,500x Land improvements 2 178,000 Cash 6,181,500X Required information [The following information applies to the questions displayed below. On January 1, Mitzu Co. pays a lump-sum amount of $2,650,000 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 $531,000, with a useful life of 20 years and a $85,000 salvage value. Land Improvements 1 is valued at $560,500 and is expected to last another 19 years with no salvage value. The land is valued at $1,858,500. The company also incurs the following additional costs. $ 347,400 191,400 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 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