On March 31, 2020, Capital Investment Advisers paid $4,570,000 for land with two buildings on it. The plan was to demolish Building 1 and build a new store (Building 3) in its place. Building 2 was to be used as a company office and was appraised at a value of $1,074,790. A lighted parking lot near Building 2 had improvements (Land Improvements 1) valued at $607,490. Without considering the buildings or improvements, the tract of land was estimated to have a value of $2,990,720. Capital incurred the following additional costs:

Cost to demolish Building 1 ......................................................................................... $ 703,160
Cost of additional landscaping ........................................................................................ 272,020
Cost to construct new building (Building 3) ................................................................ 2,476,000
Cost of new land improvements near Building 2 (Land Improvements 2) ................ 254,600

Required

1. Prepare a schedule having the following column headings: Land, Building 2, Building 3, Land Improvements 1, and Land Improvements 2. Allocate the costs incurred by Capital to the appropriate columns and total each column.

2. Prepare a single journal entry dated March 31, 2020, to record all the incurred costs, assuming they were paid in cash on that date.