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how do i calculate? Required information [The following information applies to the questions displayed below.] On January 1, Mitzu Co. pays a lump-sum amount of

how do i calculate?

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Required information [The following information applies to the questions displayed below.] On January 1, Mitzu Co. 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 $762,500, with a useful life of 20 years and a $80,000 salvage value. Land Improvements 1 is valued at $518,500 and is expected to last another 17 years with no salvage value. The land is valued at $1,769,000. The company also incurs the following additional costs. Cost to demolish Building 1 $ 344, 400 Cost of additional land grading 187, 400 Cost to construct Building 3, having a useful life of 25 years and a $398,000 salvage value 2, 222,000 Cost of new Land Improvements 2 having a 20-year useful life and no salvage value 168,000 Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column. Percent of Allocation of purchase price Appraised Total Total cost of Value Appraised X acquisition = Apportioned Cost Value Land X Building 2 X Land Improvements 1 Y Totals $ 0 0% $ 0 Land Building 2 Building 3 Land Land Improvements 1 |Improvements 2 Purchase Price Demolition Land grading New building (Construction cost) New improvements Totals $ 0 $ 0 $ 0 $ o $

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