On March 31, 2023, 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:

Required1. 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, 2023, to record all the incurred costs, assuming they were paid in cash on that date.

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Page 738 Cost to demolish Building 1 Cost of additional landscaping $ 703,160 272,020 Cost to construct new building (Building 3) 2,476,000 Cost of new land improvements near Building 2 (Land Improvements 2) 254,600