On January 1, Mitzu Co pays a lump-sum amount of $2,700,000 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 $649,000, with a useful life of 20 years and a $85,000 salvage value. Land Improvements 1 is valued at $472,000 and is expected to last another 16 years with no salvage value. The land is valued at $1,829,000. 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 ute of 25 years and a $398,000 salvage value Cost of new Land Improvements 2 having a 20-year useful life and no salvage value $ 340,400 191,400 2,242,000 173,000 Problem 8-3A Part 1 Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column. Appraised Value Allocation of purchase price Percent of Total Appraised Value Total cost of acquisition Apportioned Cost X Land Building 2 X Land improvements 1 Totals $ 0% $ Land Building 2 Building 3 Land Land Improvements 1. Improvements 2 Purchase Price Demolition Land grading New building (Construction cost) New Improvements Totals 0 $ $ 0 ols 0 $ $ Cost to demolish Building 1 Cost of additional land grading Cost to construct Building 3, having a useful life of 25 years and a $398,000 salvage value Cost of new Land Improvements 2 having a 20-year useful life and no salvage value 340,400 191,400 2,242,690 173,000 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, View transaction list Journal entry worksheet