Using the straight line method, prepare the December 31 adjusting entries to record depreciation for the 12 months of 2016 when these assets were in use.

Time remaining: 4:16:04 [The following information applies to the questions displayed below. In January 2016, Mitzu Co. pays $2,600,000 for a tract of land with two buildings on it. It plans to demolish Building 1 and build a new store in its place. Building 2 will be a company office; it is appraised at $644,000, with a useful life of 20 years and a $60,000 salvage value. A lighted parking lot near Building 1 has improvements (Land Improvements 1) valued at $420,000 that are expected to last another 12 years with no salvage value. Without the buildings and improvements, the tract of land is valued at $1,736,000. The company also incurs the following additional costs Cost to demolish Building 1 Cost of additional land grading $ 328,400 175,400 of 25 years and a $392,000 salvage value 2,202,000 Cost of new land improvements (Land Improvements 2) near Building 2, having a 20-year useful life and no salvage value 64000 Required information 16.66 points Reauired