Required information Problem 8-3A Asset cost allocation; straight-line depreciation LO C1, P1 The following information applies to the questions displayed belowj In January 2017, Mitzu Co. pays $2,750,000 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 $570,000 with a useful life of 20 years and a $80,000 salvage value. A lighted parking lot near Building 1 has improvements (Land Improvements 1) valued at $690,000 that are expected to last another 23 years with no salvage value. Without the buildings and improvements, the tract of land is valued at $1,740,000. The company also incurs the following additional costs: Cost to demolish Building l Cost of additional land grading Cost to construct new building (Building 3), 348,400 193,400 having a useful life of 25 years and a $402,000 salvage value 2,262,000 Cost of new land improvements (Land Improvements 2) near Building 2 having a 20-year useful life and no salvage value 173,000 Problem 8-3A Part 3 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the 12 months of 2017 when these assets were in use. View transaction list View journal entry worksheet No Date General Journal Debit Credit 1Doc 31 Dopreciation expenso Building 2 Accumulated depreciation-Building 2 Dec 31 Depreciation expense Building 3 Accumulated depreciation Buildin 3 Dec 31 Depreciation expense Land improvements 1 Accumulated im and nts 1 4 Dec 31 improvements2 Accumulated de ements 2 and im