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 $840,000, with a useful life of 20 years and a $75,000 salvage value. Land Improvements 1 is valued at $300,000 and is expected to last another 10 years with no salvage value. The land is valued at $1,860,000. The company also incurs the following additional costs.

Cost to demolish Building 1	$	342,400
Cost of additional land grading		193,400
Cost to construct Building 3, having a useful life of 25 years and a $400,000 salvage value		2,242,000
Cost of new Land Improvements 2 having a 20-year useful life and no salvage value		178,000

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
Land			x		=
Building 2			x		=
Land Improvements 1			x		=
Totals	$0	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	$0	$0		$0		$0	$0