Rembson Manufacturing purchased land and building for $2 million. In addition to the purchase price, Rembson made the following expenditures in connection with the purchase of the land and building: Title insurance $12,000 Legal fees for drawing the contract 3,000 Pro-rated property taxes for the period after acquisition 23,000 State transfer fees 2,200 An independent appraisal estimated the fair values of the land and building, if purchased separately, at $1.8 and $0.9 million, respectively. Shortly after acquisition, Rembson spent $67,000 to construct a parking lot and $32,000 for landscaping. Required: 1. Determine the initial valuation of each asset Rembson acquired in these transactions. 2. Repeat requirement 1, assuming that immediately after acquisition, Rembson demolished the building. Demolition costs were $990,000 and the salvaged materials were sold for $4,600. In addition, Rembson spent $64,000 clearing and grading the land in preparation for the construction of a new building