Ch 8 PB-2 and Grades for Ahmed Alamer: INTRO TO MACROECONOMIC E connect Prin of Financial Acctg: Fall Sec 5002 5003 ACCOUNTING 8 P8-2 and 3 o Questions 2-4 (of 4) The following information applies to the questions displayed below] In January 2015, Mitzu Co. pays $2,750,000 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 $540,000, with a useful life of 20 years and a $80,000 salvage value. A lighted parking lot near Bullding 1 has improvements (Land Improvements 1) valued at $540,000 that are expected to last another 18 years with no salvage value. Without the buildings and improvements, the tract of land is valued at $1,920,000. The company also incurs the following additional costs: Cost to demolish Building 1 Cost of additional land grading Cost to construct new building (Building 3), having a useful life $ 342,400 93,400 2,222,000 168,000 of 25 years and a $402,000 salvage value Cost of new land improvements (Land Improvements 2) near Building 2 having a 20-year useful life and no salvage value 5.00 points Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column. (Round your percentage answers to the nearest whole number.) Percent of Appraised Value Total AppraisedX Total cost of acquisition Allocation of purchase price Apportione