On August 21, 20X2, Auto Zone, an auto service chain, acquired an existing building and land for $1,500,000 from a local gas station that had failed. The tax assessor had placed an assessed valuation of $247,000 on the land and $703,000 on the building as of January 1, 20X2. Land Building Total 247,000 703,000 950,000 Requirement 1. How much of the $1,500,000 purchase price should be attributed to the building? Why? Requirement 1. How much of the $1,500,000 purchase price should be attributed to the building? Why? Begin by calculating the allocated cost of both the land and the building Appraised Total Cost Allocated value Weighting to Allocate Costs 247,000 703,000 Land Building Total 950,000