09 On January 1, Mitzu Co. pays a lump-sum amount of $2,600,000 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 $767,000, with a useful life of 20 years and a $85,000 salvage value. Land Improvements 1 is valued at $442,500 and is expected to last another 15 years with no salvage value. The land is valued at $1740,500. The company also incurs the following additional costs. of 3 $ 339,400 193,400 Cost to demolish Building 1 Cost of additional land grading Cost to construct Building 3, having a useful life of 25 years and a $402,000 salvage value Cost of new Land Improvements 2 having a 20-year useful life and no salvage value 2,242,000 pped 173,000 Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column. Allocation of purchase price Appraised Value Total cost of acquisition Apportioned Cost Percent of Total Appraised Value 59% 26% 15% $ X Land Building 2 Land Improvements 1 Totals 1,740,500 787200 442,500 2,950,000 $ 2,000,000 2,000,000 2,600.000 X $ 100% $ 0 Land Building 2 Building 3 Land Improvements 1 Land Improvements 2 Purchase Price Demolition Land grading New building Construction cost) New improvements Totals 05 0 0 $ 0 OS $ 6 8 7 of 11