2 In January 2017, 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 $85,000 salvage value. A lighted parking lot near Building 1 has improvements (Land Improvements 1) valued at $600,000 that are expected to last another 20 years with no salvage value. Without the buildings and improvements, the tract of land is valued at $1,800,000. The company also incurs the following additional costs: Part 1 of3 Cost to demolish Building 1 cost of additional land grading Cost to construct new building (Building 3), having a useful life of 25 $ 348,400 189,400 2,242,000 178,000 1.81 points years and a $400,000 salvage value Cost of new land improvements (Land Improvements 2) near Building 2 having a 20-year useful life and no salvage value eBook Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column. Print Percent of Total Appraised Value Appraised Value Total cost of acquisition References Allocation of purchase price - Apportioned Cost Land Building 2 Land Improvements 1 Totals $1,800,000 600,000 600,000 $3,000,000 20%) 20%) 100% 60%) x $ 2,700,000 2,700,000 2,700,000 1,620,000 540,000 540,000 $ 2,700,000 x x and Building 2 Building 3 nd ements 2 Land Improvements 1 Im Purchase Price Demolition Land grading New building (Construction cost) New improvements Totals 0