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Required information Problem 8-3A (Algo) Asset cost allocation; straight-line depreciation LO C1, P1 [The following information applies to the questions displayed below.] On January 1,

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Required information Problem 8-3A (Algo) Asset cost allocation; straight-line depreciation LO C1, P1 [The following information applies to the questions displayed below.] 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 $732,000, with a useful life of 20 years and a $90,000 salvage value. Land improvements 1 is valued at $457,500 and is expected to last another 15 years with no salvage value. The land is valued at $1,860.500. The company also incurs the following additional costs: Cost to demolish Building 1 Cost of additional land grading Cost to construct fuilding 3, haying a useful life of 25 years and a $490, 000 salvage value Cost of new tand Inprovenents 2, having a 20-year useful life and no salvage value 5341,400 189,400 2,262,000 178,000 Problem 8-3A (Algo) Part 1 Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column

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