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 $720,000, with a useful life of 20 years and a $80,000 salvage value. Land Improvements 1 is valued at $480,000 and is expected to last another 15 years with no salvage value. The land is valued at $1,800,000. 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 $ 344,480 187,480 2,302, eee 168,000 Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column. Answer is not complete. Allocation of Purchase Price Appraised Value Percent of Total Appraised Value 80% Total cost of acquisition Apportioned Cost Land $ 1,800,000 Is 2.650.000 720,000 = Building 2 Land Improvements 1 Totals 2.650.000 2.650.000 = 480,000 $ 3,000,000 80% IS 0 Land Building 2 Building 3 Land Improvements 1 Land Improvements 2 Purchase Price Demolition Land grading New building (Construction cost) New improvements Totals S 0 S 0 0 0 S 0