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 $796,500, with a useful life of 20 years and a $75,000 salvage value. Land Improvements 1 is valued at $265,500 and is expected to last another 9 years with no salvage value. The land is valued at $1,888,000. The company also incurs the following additional costs.

Cost to demolish Building 1	$	346,400
Cost of additional land grading		189,400
Cost to construct Building 3, having a useful life of 25 years and a $398,000 salvage value		2,202,000
Cost of new Land Improvements 2 having a 20-year useful life and no salvage value		173,000

Please fill in the blanks:

Please let me know how you find the Percentage of total appraised value.

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 Total cost of acquisition Apportioned Cost Land X Building 2 Land Improvements 1 = 1,888,000 796,500 265,500 2,950,000 $ 2,650,000 2,650,000 2,650,000 Totals 0% 0 Land Building 2 Building 3 Land Improvements 1 Land Improvements 2 $ 0 Purchase Price $ 0 Demolition 0 0 0 0 346,400 189,400 0 0 0 0 Land grading New building (Construction cost) New improvements 0 0 2,202,000 0 0 0 0 0 0 173,000 173,000 Totals 535,800 $ 0 $ 2,202,000 0