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On January 1 , Mitzu Company pays a lump - sum amount of $ 2 , 6 5 0 , 0 0 0 for land,

On January 1, Mitzu Company 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 $570,000, with a useful life of 20 years and a $90,000 salvage value. Land Improvements 1 is valued at $690,000 and is expected to last another 23 years with no salvage value. The land is valued at $1,740,000. 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 $398,000 salvage value
Cost of new Land Improvements 2, having a 20-year useful life and no salvage value
$338,400
195,400
2,282,000
168,000
Required:
Allocate the costs incurred by Mitzu to the appropriate columns and total each column.
\table[[Allocation of Purchase Price,\table[[Appraised],[Value]],\table[[Percent of],[Total],[Appraised],[Value]],x,\table[[Total cost of],[acquisition]],=,Apportioned Cost],[Land,,,x,,=,,],[Building 2,,:'10,x,,=,,],[Land Improvements 1,,,x,,=,,],[Totals,,IF,,,,,],[Land,Building 2,,Building 3,,\table[[Land],[Improvements 1]],\table[[Land],[Improvements 2]]],[Purchase Price],[\table[[Purchase Price],[Demolition]]],[\table[[Demolition],[Land grading]]],[\table[[Land grading],[New building (Construction cost)]]],[\table[[New building (Constructioni cost)],[New improvements]]],[Totals,,,,,,,]]
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