View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 Jan 01 Land 503,500 Building 2 Building 3 Land improvements 1 Land improvements 2 2,242,000 556,500 168,000 Cash Check my work 25 Part 2 of 3 Required information Problem 8-3A (Algo) Asset cost allocation; straight-line depreciation LO C1, P1 (The following information applies to the questions displayed below.] 3.44 points On January 1, Mitzu Co. pays a lump-sum amount of $2,650,000 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 $570,000, with a useful life of 20 years and a $80,000 salvage value. Land Improvements 1 is valued at $630,000 and is expected to last another 21 years with no salvage value. The land is valued at $1,800,000. The company also incurs the following additional costs. X 00:34:03 $ eBook 348,400 193,400 References Cost to demolish Building 1 Cost of additional land grading Cost to construct Building 3, having a useful life of 25 years and a $398,000 salvage value Cost of new Land Improvements 2 having a 20-year useful life and no salvage value 2,242,000 168,000 Problem 8-3A (Algo) Part 2 2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1. View transaction list View journal entry worksheet