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, 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 $600,000. with a useful life of 20 years and a $85,000 salvage value, Land Improvements 1 is valued at $510,000 and is expected to last another 17 years with no salvage value. The land is valued at $1,890,000. 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 $402,000 salvage value Cost of new Land Improvements 2, having a 20-year useful life and no salvage value $ 343,400 189,400 2,262,000 173,000 2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1, View transaction list Journal entry worksheet Note: Enter debits before credits General Journal Debit Credit Date December 31 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets were in use. View transaction list Journal entry worksheet Record the year-end adjusting entry for the depreciation expense of Land Improvements 2 Note: Enter debits before credits. General Journal Debit Date December 31 Credit