[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 $732,000, with a useful life of 20 years and a $85,000 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 $1,952,000. The company also incurs the following additional costs. $ 342,400 191,400 Cost to demolish Building 1 Cost of additional land grading Cost to construct Building 3, having a useful life of 25 years and a $398,000 salvage value Cost of new Land Improvements 2 having a 20-year useful life and no salvage value 2,242,000 168,000 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 1 3 4 > N Record the year-end adjusting entry for the depreciation expense of Building 2. Record the year-end adjusting entry for the depreciation expense of Land Improvements 1. Journal entry worksheet