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Accounting

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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 $2,800,000 for land, Building 1, Building 2, and Land Improvements 1. Buliding 1 has no value and will be demolished. Building 2 will be an office and is appraised at $619,500, with a useful life of 20 years and a $75,000 salvage value. Land Improvements 1 is valued at $531,000 and is expected to last another 18 years with no salvage value. The land is valued at $1,799,500. The company also incurs the following additional costs.
Cost to demolish Building 1
cost of additional land grading
$345,400
Cost to construct Building 3, having a useful life of 25 years and a $400,000 salvage value
Cost of new Land Improvements 2, having a 20-year useful life and no 5 alvage salvage value
2,242,080
173,000
2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1.
View transactiph list
(1) Record the cost of the plant assets, paid in cash.
\table[[,Debit,Credit],[,,],[,,],[,2,242,000,],[,531,000,],[,173,000,],[,,]]

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