The following information applies to the questions displeyed below In January 2015, Keona Co. pays $2,700,000 for a tract of land with two buildings on it. It plans to demolish Building 1 and bulld a new store in Its place. Bullding 2 will be a company office; It is appralsed at $590,000, with a useful life of 20 years and an $80,000 residual value. A lighted parking lot near Building 1 has improvements (Land Improvements 1) valued at $501,500 that are expected to lest another 17 yeers with no residual value. Without the buildings and improvements, the tract of land is valued at $1,858,500. The company also Incurs the following additional costs: Cost to demolish Building 1 Cost of additional land grading Cost to construct new building (Building 3), having a useful life S 340.400 of 25 years and a $398,000 residual value Cost of new land improvements (Land Improvements 2) near Building 2 heving o 20-year useful life and no residual value 95.400 2.262,000 73,000 value 10.00 points Required: 1. Allocate the costs incurred by Keona to the appropriate columns and total each column. (Leave no cells blank be certain to enter "O" wherever required. Omit the "$" sign in your response.) Land Land Purchase price Demolition Land grading New building Totals 2 10.00 points 2. Prepare a single joumal entry to record all the incurred costs assuming they are paid in cash on January 1, 2015. (Omit the "$" sign in your response.] Date Jan. 1 Land General Journal Debit Credit Building2 (Click to select) Land improvements 1 Land improvements 2 Cash value 10.00 points 3. Using the s t-line method, prepare the December 31 adjusting entries to record depreciation for the 12 months of 2015 when these assets were in use. (Omit the "$" sign in your response.) Date Dec 31 General Journal Credit Depreciation expense-building 2 Accumulated depreciation-building 2 Accumulated depreciation-building 3 Accum depreciation-land improv. 1 Depreciation expense-building 3 Depreciation expense-land improv.1 Depreciation expense-land improv 2 Accum depreciation-land improv. 2 References Worksheet Learning Objective: 10-C1 Explain the cost principle for computing the cost of property, plant and equipment Ditficulty:3 Hard Learning Objective: 10-P1 Compute and record depreciation using the straight-line, units-olproduction, and declining- balance methods