[The following information applies to the questions displayed below.] On January 1, Mitzu Company 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 $780,000, with a useful life of 20 years and a $70,000 salvage value. Land Improvements 1 is valued at $300,000 and is expected to last another 10 years with no salvage value. The land is valued at $1,920,000. The company also incurs the following additional costs.

Cost to demolish Building 1	$ 343,400
Cost of additional land grading	191,400
Cost to construct Building 3, having a useful life of 25 years and a $400,000 salvage value	2,202,000
Cost of new Land Improvements 2, having a 20-year useful life and no salvage value	168,000

Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column. 2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1. Answer is complete but not entirely correct. 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets were in use. 1 Record the year-end adjusting entry for the depreciation expense of Building 2 . 2 Record the year-end adjusting entry for the depreciation expense of Building 3. 3 Record the year-end adjusting entry for the depreciation expense of Land Improvements 1. 4 Record the year-end adjusting entry for the depreciation expense of Land Improvements 2