[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 $690,000, with a useful life of 20 years and a $75,000 salvage value. Land Improvements 1 is valued at $480,000 and is expected to last another 16 years with no salvage value. The land is valued at $1,830,000. 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 $398,000 salvage value cost of new Land Improvements 2, having a 20-year useful life and no salvage value $340,400 195,400 2,302,000 178,000 Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets were use