15 Part 1 of 3 Required information [The following information apples to the questions displayed below.) On January 1, Mitzu Co. pays a lump sum amount of $2,650,000 for land, Building 1, Building 2 and Land Improvements Building has no value and will be demolished. Building 2 will be an office and is appraised at $840,000, with a useful life of 20 years and a $80,000 salvage value. Land Improvements 1 is valued at $390,000 and is expected to last another 13 years with no salvage value. The land is valued at $1770,000. The company also incurs the following additional costs. 5 points $ 338,40 195,400 Cost to demolish Building 1 Cost of additional land grading Cort to construct Building, having a useful of 25 years and $398,000 salvagy value Cost of Land Improvements 2 having a 10-year useful life and no salvage value 2,242,000 178,000 Required: een 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column Allocation of purchase price Appraised Value Percent of Total Appraised Value Total cost of acquisition ) Appartiene con Land $ Building 2 Land improvements Total 1.770.000 340.000 390.000 3.000.000 5 2.650.000 2.650.000 2.650,000 5 0% $ Land Land Building Purchase Price Demolition Landgrading Now building Construction Cost Neprovements Totais 0 $ O 0 $ 5