Required information Problem 8-3A Asset cost allocation; straight-line depreciation LO C1, P1 (The following information applies to the questions displayed below.) In January 2017, Mitzu Co. pays $2,650,000 for a tract of land with two buildings on it. It plans to demolish Building 1 and build a new store in its place. Building 2 will be a company office; it is appraised at $737,500, with a useful life of 20 years and a $75,000 salvage value. A lighted parking lot near Building 1 has improvements (Land Improvements 1) valued at $413,000 that are expected to last another 14 years with no salvage value. Without the buildings and improvements, the tract of land is valued at $1,799,500. The company also incurs the following additional costs: $ 340, 400 185, 400 Cost to demolish Building 1 Cost of additional land grading Cost to construct new building (Building 3), having a useful life of 25 years and a $402, 000 salvage value Cost of new land improvements (Land Improvements 2) near Building 2 having a 20- year useful life and no salvage value 2, 202, 000 173,000 Journal entry worksheet 1 2 3 4 Record the year-end adjusting entry for the depreciation expense of Building Note: Enter debits before credits. General Journal Debit Date Dec 31 - Record entry Clear entry View general journal Journal entry worksheet 1 3 4 Record the year-end adjusting entry for the depreciation expense of Building Note: Enter debits before credits. General Journal Debit Credit Date Dec 31 - Record entry Clear entry View general journal Journal entry worksheet Record the year-end adjusting entry for the depreciation expense of Land Improvements 1. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal Journal entry worksheet