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Required information

Problem $8-3$A $($Algo$)$ Asset cost allocation; straight$-$line depreciation LO C$1,$ P$1$

$[$The following information applies to the questions displayed below.$]$

On January $1,$ Mitzu Company pays a lump$-$sum amount of $$2,600,000$ for land, Building $1,$ Building $2,$ and Land Improvements $1.$ Building $1$ has no value and will be demolished. Building $2$ will be an office and is appraised at $$678,500,$ with a useful life of $20$ years and a $$75,000$ salvage value. Land Improvements $1$ is valued at $$472,000$ and is expected to last another $16$ years with no salvage value. The land is valued at $$1,799,500.$ The company also incurs the following additional costs.Problem $8-3$A $($Algo$)$ Part $1$

Required:

$1.$Allocate the costs incurred by Mitzu to the appropriate columns and total each column.

$2.$Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January $1.3.$Using the straight$-$line method, prepare the December $31$ adjusting entries to record depreciation for the first year these assets were in use.