On January $1,$ Mitzu Company 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 $$793,000,$

with a useful life of $20$ years and a $$85,000$ salvage value. Land Improvements $1$ is valued at $$305,000$ and is expected to

last another $10$ years with no salvage value. The land is valued at $$1,952,000.$ The company also incurs the following

additional costs.

Cost to demolish Building $1$

Cost of additional land grading

$$347,400$

Cost to construct Building $3,$ having a useful life of $25$ years and a $$400,000$ salvage value

$189,400$

Cost of new Land Improvements $2,$ having a $20-$year useful life and no salvage value

$2,202,000$

$168,000\backslash$table$[[$Allocation of Purchase Price,$\backslash$table$[[$Appraised$],[$Value$]],\backslash$table$[[$Percent of$],[$Total$],[$Appraised$],[$Value$]],,\backslash$table$[[$Total cost of$],[$acquisition$]],=,$Apportioned Cost$],[$Land$,,,,,=,,],[$Building $2,,,,,=,,],[$Land Improvements $1,,,,,=,,],[$Totals$],[,$Land,Building $2,$Building $3,\backslash$table$[[$Land$],[$Improvements $1]],\backslash$table$[[$Land$],[$Improvements $2]]],[$Purchase Price$],[$Demolition$],[$Land grading$],[$New building $($Construction cost$)],[$New improvements$],[$Totals$,,,,,,,]]$