6 Part 1 of 3 Required information [The following information applies to the questions displayed below] On January 1, Mitzu Company pays a lump-sum amount of $2,650,000 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 $649,000, with a useful life of 20 years and a $75,000 salvage value. Land Improvements 1 is valued at $560,500 and is expected to last another 19 years with no salvage value. The land is valued at $1740,500. 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 $398,688 salvage value Cost of new and Improvenents 2, having a 20-year useful life and no salvage value $ 342,400 193,400 2,282.ee 178,000 Required: 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 Apportioned Cost $ 1.740.800 Land Building 2 Land improvements Total 549.000 560,500 $ 2,950,000 6 Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column. Part 1 of 3 pare Allocation of Purchase Price Appraised Value Percent of Total Appraised Value Total cost of acquisition Apportioned Cost $ Land Building 2 Land Improvements 1 Totals 1,740,500 649,000 560,500 2,950,000 $ Land Land Building 2 Building Improvements 1 Land Improvements 2 Purchase Price Demolition Land grading New building (Construction cost) New Improvements Totals Required information 7 Journal entry worksheet