On January $1,$ Mitzu Company pays a lump$-$sum amount of $$2,750,000$ for land, Building $1,$ Building $2,$ and Land Improvements $1.$ Building $1$ has no value and will be demolished. Building $2$ will be an office and is appraised at $$570,000,$ with a useful life of $20$ years and a $$75,000$ salvage value. Land Improvements $1$ is valued at $$540,000$ and is expected to last another $18$ years with no salvage value. The land is valued at $$1,890,000.$ 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 $$400,000$ salvage value

cost of new Land Improvements $2,$ having a $20-$year usef$$t life and no salvage value

$$341,400$

$191,400$

$2,262,000$

$168,000$