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 Co. 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 $840,000, with a useful life of 20 years and a $80,000 salvage value. Land Improvements 1 is valued at $360,000 and is expected to last another 12 years with no salvage value. The land is valued at $1,800,000. The company also incurs the following additional costs. $ 339,400 195,400 Cost to demolish Building 1 Cost of additional land grading Cost to construct Building 3, having a useful life of 25 years and a $402,600 salvage value Cost of new Land Improvements 2 having a 20-year useful life and no salvage value 2,222,000 173.000 Problem 8-3A (Algo) Part 1 Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column. Allocation of Purchase Price Appraised Value Percent of Total Appraised Value Total cost of acquisition - Apportioned Cost x x Land Building 2 Land improvements 1 Totals x $ 0 0% $ 0 Land Building 2 Building 3 Land Land Improvements 1 Improvements 2 Purchase Price Demolition Landgrading New building Construction cost) New improvements Totals $ 05 0 $ OS 0 Journal entry worksheet