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 appralsed at $570,000. with a useful life of 20 years and a $75,000 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 $1,830,000. The company also incurs the following additional costs. Cost to denolish Bullding 1 Cost of additional land grading cost to construct Buifding 3 , having a useful life of 25 years and a $402,000 satvage vatue Cost of new Land Improvenents 2, having a 20-year useful tife and no salvage value $346,400 193,400 2,222 , ee 168,000 Problem 8-3A (Algo) Part 1 Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column. 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 appralsed at $570,000. with a useful life of 20 years and a $75,000 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 $1,830,000. The company also incurs the following additional costs. Cost to denolish Bullding 1 Cost of additional land grading cost to construct Buifding 3 , having a useful life of 25 years and a $402,000 satvage vatue Cost of new Land Improvenents 2, having a 20-year useful tife and no salvage value $346,400 193,400 2,222 , ee 168,000 Problem 8-3A (Algo) Part 1 Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column