On January $1,$ Mitzu Company pays a lump$-$sum amount of $$2,600,000$ for land, Building $1,$ Building $2,$ and Land Improvements $1.$ Building $1$ has no value and will be demolished. Building $2$ will be an office and is appraised at $$762,500,$ with a useful life of $20$ years and a $$80,000$ salvage value. Land Improvements $1$ is valued at $$396,500$ and is expected to last another $13$ years with no salvage value. The land is valued at $$1,891,000.$ The company also incurs the following additional costs.

Cost to demolish Building $1$ $ $346,400$

Cost of additional land grading $191,400$

Cost to construct Building $3,$ having a useful life of $25$ years and a $$400,000$ salvage value $2,282,000$

Cost of new Land Improvements $2,$ having a $20-$year useful life and no salvage value $178,000$

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 $\backslash$times Total cost of acquisition $=$ Apportioned Cost

Land $$1,891,00062\%\backslash$times $$2,600,000=$

Building $2762,50029\%\backslash$times $2,600,000=$

Land Improvements $1396,50015\%\backslash$times $2,600,000=$

Totals $$3,050,000106\%$ $$0$

Land Building $2$ Building $3$ Land Improvements $1$ Land Improvements $2$

Purchase Price

Demolition

Land grading

New building $($Construction cost$)$

New improvements

Totals $$0$ $$0$ $$0$ $$0$ $$0$