In January 2017, 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 $678,500, with a useful life of 20 years and a $80,000 salvage value. A lighted parking lot near Building 1 has improvements (Land Improvements 1) valued at $442,500 that are expected to last another 15 years with no salvage value. Without the buildings and improvements, the tract of land is valued at $1,829,000. The company also incurs the following additional costs: $ 347,400 195,400 Cost to demolish Building 1 Cost of additional land grading Cost to construct new building (Building 3), having a useful life of 25 years and a $402,000 salvage value Cost of new land improvements (Land Improvemento 2) near Building 2 having a 20-year useful life and no salvage value 2, 302,000 173,000 Problem 8-3A Part 1 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 X Total cost of acquisition Apportioned Cost $ X $ 2,750,000 X 2,750,000 Land Building 2 Land Improvements 1 Totals 1,829,000 678,500 442,500 2,950,000 X 2,750,000 $ 0% $ 0 Land Building 2 Building 3 Land Improvements 1 Land Improvements 2 Purchase Price Demolition Land grading New building (Construction cost) New improvements Totals $ os 0 $ os 0 build a new store in its place. Building 2 will be a company office; it is appraised at $678,500, with a useful life of 20 year and a $80,000 salvage value. A lighted parking lot near Building 1 has improvements (Land improvements 1) valued at $442,500 that are expected to last another 15 years with no salvage value. Without the buildings and improvements, the tract of land is valued at $1,829,000. The company also incurs the following additional costs. 5 347,400 195,400 Cost to demolish Building 1 Coat of additional land grading Cost to construet new building (Building 3), having a useful life of 25 years and a $402,000 salvage value cost of new land improvements (Land. Improvements 2) Dear Building 2 having a 20-year useful life and no salvage value 2,302,000 173,000 Problem 8-3A Part 2 2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1, 2017 View transaction list Journal entry worksheet