[The following information applies to the questions displayed below.] On January 1, Mitzu Company pays a lump-sum amount of $2,750,000 for land, Bullding 1, Building 2, and Land Improvements 1. Building 1 has no value and will be demolished. Bullding 2 will be an office and is appraised at $678,500, with a useful life of 20 years and a $70,000 salvage value. Land improvements 1 is valued at $501,500 and is expected to last another 17 years with no salvage value. The land is valued at $1,770,000. The company also incurs the following additional costs. Problem 8-3A (Algo) Part 2 2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1. Journal entry worksheet Record the cost of the plant assets, pald in cash. Note: Enter debits before credits. Required information Problem 8-3A (Algo) Asset cost allocation; straight-line depreciation LO C1, P1 [The following information applies to the questions displayed below.] On January 1. Mitzu Company pays a lump-sum amount of $2,750,000 for land, Bullding 1, Bullding 2, and Land Improvements 1. Building 1 has no value and will be demolished. Building 2 will be an office and is appraised at $678,500, with a useful life of 20 years and a $70,000 salvage value. Land Improvements 1 is valued at $501,500 and is expected to last another 17 years with no salvage value. The land is valued at $1,770,000. 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 $400,000 salvage value Cost of new Land Improvements 2, having a 20-year useful 11 fe and no salvage value 2,282,000 168,000 Problem 8-3A (Algo) Part 3 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets were in use. Journal entry worksheet Record the year-end adjusting entry for the depreciation expense of Building 2. Note: Enter debits before credits