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On January 1, Mitzu Company pays a lump-sum amount of $2,800,000 for land, Building 1, Building 2, and Land Improvements 1. Building 1 has no

On January 1, Mitzu Company pays a lump-sum amount of $2,800,000 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 $600,000, with a useful life of 20 years and a $70,000 salvage value. Land Improvements 1 is valued at $600,000 and is expected to last another 20 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 $ 343,400
Cost of additional land grading 189,400
Cost to construct Building 3, having a useful life of 25 years and a $400,000 salvage value 2,222,000
Cost of new Land Improvements 2, having a 20-year useful life and no salvage value 168,000
image text in transcribed Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column

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