[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 $762,500, with a useful life of 20 years and a $80,000 salvage value. Land Improvements 1 is valued at $366,000 and is expected to last another 12 years with no salvage value. The land is valued at $1,921,500. 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 $398, 000 salvage value Cost of new Land Improvements 2, having a 20 -year useful life and no salvage value $340,400 193,400 2,282,000 173,000 oblem 8-3A (Algo) Part 2 Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1. Journal entry worksheet Note: Enter debits before credits