1 On January 1, Mitzu Company pays a lump-sum amount of $2,700,000 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 $600,000, with a useful life of 20 years and a $85,000 salvage value. Land Improvements 1 is valued at $600,000 and is expected to last another 20 years with no salvage value. The land is valued at $1,800,000. The company also incurs the following additional costs. Cost to demolish Building 1 Cost of additional land grading Part 1 of 3 Cost to construct Building 3, having a useful life of 25 years and a $400,000 salvage value Cost of new Land Improvements 2, having a 20-year useful life and no salvage value $ 348,400 185,400 2,242,000 168,000 10 points Skipped eBook Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column. Appraised Allocation of Purchase Price Value Percent of Total Appraised Value Total cost of acquisition Land Building 2 Land Improvements 1 Totals Purchase Price Demolition Land grading New building (Construction cost) = = = $ 0 0% Land $ Apportioned Cost Building 2 Building 3 Land Improvements 1 Land Improvements 2 0