Required information Problem 8-3A Asset cost allocation; straight-line depreciation LO C1, P1 [The following information applies to the questions displayed below] On January 1, Mitzu Co. pays a lump-sum amount of $2,700,000 for land, Building 1, Building 2, and Land Improvernents 1 Building 1 has no value and will be demolished. Building 2 will be an office and is appraised at $630,000, with a useful life of 20 years and a $85.000 salvage value. Land Improvements 1 is valued at $570,000 and is expected to last another 19 years with no salvage value. The land is valued at $1,800,000. The company also incurs the following additional costs. Problem 8-3A Part 1 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 assurning they are paid in cash on January 1. Journal entry worksheet Record the cost of the plant assets, paid in cash. Note: Enter debits before credits. 3. Using the straight - line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets were in use. Journal entry worksheet 2 Record the year-end adjusting entry for the depreciation expense of Building 2. Note: Enter debits before credits. 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets were in use. Journal entry worksheet Record the year-end adjusting entry for the deprecation expense of Bulding 3. Note: Enter debits before credits. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets were use. Journal entry worksheet 4 Record the year-end adjusting entry for the depreciation expense of Land Improvements 1. Nete: Inter debits before crediti. 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets were in use. Journal entry worksheet Record the year-end adjusting entry for the depreciation expense of Land Improvements 2. Note: Enter debits before credits