Determine the initial valuation of each asset, assuming that immediately after acquisition, Samtech demolished the building. Demolition costs were $$250,000$ and the salvaged materials were sold for $$6,000.$ In addition, Samtech spent $$86,000$ clearing and grading the land in preparation for the construction of a new building.Samtech Manufacturing purchased land and a building for $$4$ million. In addition to the purchase price, Samtech made

the following expenditures in connection with the purchase of the land and building:

An independent appraisal estimated the fair values of the land and building, if purchased separately, at $$3\mathrm{.}3$ and $$1\mathrm{.}1$

million, respectively. Shortly after acquisition, Samtech spent $$82,000$ to construct a parking lot and $$40,000$ for

landscaping.

Required:

Determine the initial valuation of each asset Samtech acquired in these transactions.

Determine the initial valuation of each asset, assuming that immediately after acquisition, Samtech demolished the

building. Demolition costs were $$250,000$ and the salvaged materials were sold for $$6,000.$ In addition, Samtech

spent $$86,000$ clearing and grading the land in preparation for the construction of a new building.

Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

Determine the initial valuation of each asset, assuming that immediately after acquisition,

Samtech demolished the building. Demolition costs were $$250,000$ and the salvaged

materials were sold for $$6,000.$ In addition, Samtech spent $$86,000$ clearing and grading

the land in preparation for the construction of a new building.

Note: Enter your answers in dollars not in millions of dollars.

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