On January 1, Mitzu Company pays a lump-sum amount of $2,700,000 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 $610,000, with a useful life of 20 years and a $80,000 salvage value. Land Improvements 1 is valued at $518,500 and is expected to last another 17 years with no salvage value. The land is valued at $1,921,500. The company also incurs the following additional costs.

Cost to demolish Building 1	$ 343,400
Cost of additional land grading	195,400
Cost to construct Building 3, having a useful life of 25 years and a $400,000 salvage value	2,242,000
Cost of new Land Improvements 2, having a 20-year useful life and no salvage value	173,000

Required:

1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column.

\begin{tabular}{|c|c|c|c|c|c|c|c|} \hline Allocation of Purchase Price & \begin{tabular}{l} Appraised \\ Value \end{tabular} & \begin{tabular}{l} Percent of \\ Total \\ Appraised \\ Value \end{tabular} & x & \begin{tabular}{l} Total cost of \\ acquisition \end{tabular} & = & \multicolumn{2}{|c|}{ Apportioned Cost } \\ \hline Land & & & x & & = & & \\ \hline Building 2 & & & & & = & & \\ \hline Land Improvements 1 & & & x & & = & & \\ \hline Totals & $ & 0% & & & & $ & 0 \\ \hline & Land & Building 2 & & Building 3 & & \begin{tabular}{c} Land \\ Improvements 1 \end{tabular} & \begin{tabular}{c} Land \\ Improvements 2 \end{tabular} \\ \hline Purchase Price & & & & & & & \\ \hline Demolition & & & & & & & \\ \hline Land grading & & & & & & & \\ \hline New building (Construction cost) & & & & & & & \\ \hline New improvements & & & & & & & \\ \hline Totals & $ & $ & 0 & $ & 0 & $ & S \\ \hline \end{tabular}