On May 2^nd. P³ acquired a storage facility and the lot adjacent to it. P³ plans to use one-half of the lot to store various equipment and will build an additional 20,000 square foot storage facility on the other half of the lot this year. The land is appraised at $2,500,000 and the storage building is appraised at $1,550,000. P³ spent $3,850,000 to buy the storage facility and lot. In addition, they paid $5,000 in back taxes on the storage facility, $1,000 in title search fees related to the land and $2,000 related the building; a lien of $7,000 was paid on the building as well. P³ spent $25,000 having the proper drainage installed on the part of the lot on which the new construction will occur. P³ uses straight-line depreciation for buildings and land improvements with a 20-year life for buildings and a 5-year life for land improvements (include journal entries)