In January 2018, Mitzu Co. pays $2,700,000 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 $600,000, 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 $570,000 that are expected to last another 19 years with no salvage value. Without the buildings and improvements, the tract of land is valued at $1,830,000.
The company also incurs the following additional costs:

Cost to demolish Building 1 $ 341,400
Cost of additional land grading 187,400
Cost to construct new building (Building 3), having a useful life of 25 years and a $402,000 salvage value 2,242,000
Cost of new land improvements (Land Improvements 2) near Building 2 having a 20-year useful life and no salvage value 173,000

Required:
1. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1, 2018.
2. Record the cost of the plant assets, paid in cash.
3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the 12 months of 2018 when these assets were in use.