On January 1, Mitzu Co. pays a lump-sum amount of $2,600,000 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 $720,000, with a useful life of 20 years and a $80,000 salvage value. Land Improvements 1 is valued at $390,000 and is expected to last another 13 years with no salvage value. The land is valued at $1,890,000. The company also incurs the following additional costs. Cost to demolish Building 1 Cost of additional land grading Cost to construct Building 3, having a useful life of 25 years and a $402,000 salvage value Cost of new Land Improvements 2 having a 20-year useful life and no salvage value. $ 344,400 189,400 2,282,000 173,000 Problem 8-3A (Algo) Part 1 Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column. Percent of Allocation of Purchase Price Appraised Valua Total Annraised Total cost of acquisition Apportioned Cost Seved Required information 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 Total cost of Apportioned Cost acquisition Land $ 1,890,000 x $ 2,600,000 Building 2 720,000 X 2,600,000 Land Improvements 11 390,000 x 2,600,000 Totals $ 3,000,000 0% $ 0 Purchase Price Demolition Land grading New building (Construction cost) New improvements Totals Land Building 2 Building 3 Land Land Improvements 1 Improvements 2 $ 0 $ 0 $ 0 $ Help Save & Evit Subma Check my work