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Required information [The following information applies to the questions displayed below] On January 1, Mitzu Company pays a lump-sum amount of $2,600,000 for land, Building 1, Building 2, and Land Improvements 1. Bullding 1 has no value and will be demolished. Bullding 2 will be an office and is appraised at $644,000, with a useful life of 20 years and a $60,000 salvage value. Land Improvements 1 is valued at $420,000 and is expected to last another 12 years with no salvage value. The 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 Cost to construct Building 3 , having a useful Life of 25 years and a $392,600 satvage value 2,202,800 cost of new Land Improvements 2 , having a 20-year useful life and no salvage value 164,000 2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1 . Required information [The following information applies to the questions displayed below] On January 1, Mitzu Company pays a lump-sum amount of $2,600,000 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 $644,000, with a useful life of 20 years and a $60,000 salvage value. Land Improvements 1 is valued at $420,000 and is expected to last another 12 years with no salvage value. The 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 Cost to construct Building 3 , having a useful life of 25 years and a $392,060 satvage value 2,262 , 008 Cost of new Land Improvenents 2 , having a 20 -year useful life and no salvage value 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 Bullding 2. Notel Enter debits before credits

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