4 rt 1 of 3 1 2 nts eBook Print eferences Required information The following information applies to the questions displayed below On January 1 Mitzu Company pays a lump sum amount of 2 800 000 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 823 500 with a useful life of 20 years and a 75 000 salvage value Land Improvements 1 is valued at 366 000 and is expected to last another 12 years with no salvage value The land is valued at 1 860 500 The company also incurs the following additional costs Cost to demolish Building 1 Cost of additional land grading Cost to construct Building 3 having a useful life of 25 years and a 398 000 salvage value Cost of new Land Improvements 2 having a 20 year useful life and no salvage value Required 1 Allocate the costs incurred by Mitzu to the appropriate columns and total each column Allocation of Purchase Price Land Building 2 Appraised Value Percent of Total Appraised Value X X X X Total cost of acquisition Apportioned Cost 340 400 185 400 2 262 000 173 000 Check my work