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On January $1,$ Mitzu Company pays a lump$-$sum amount of $$2,600,000$ for land, Building $1,$ Building $2,$ and Land Improvements $1.$ Building $1$ has no value and will be demolished. Building $2$ will be an office and is appraised at $$690,000,$ with a useful life of $20$ years and a $$75,000$ salvage value. Land Improvements $1$ is valued at $$450,000$ and is expected to last another $15$ years with no salvage value. The land is valued at $$1,860,000.$ The company also incurs the following additional costs.

Cost to demolish Building $1$ $ $343,400$

Cost of additional land grading $189,400$

Cost to construct Building $3,$ having a useful life of $25$ years and a $$400,000$ salvage value $2,282,000$

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.Required Information

$[$The following information applies to the questions displayed below.$]$

On January $1,$ Mitzu Company pays a lump$-$sum amount of $$2,600,000$ for land, Bullding $1,$ Bullding $2,$ and Land

Improvements $1.$ Bullding $1$ has no value and will be demolished. Bullding $2$ will be an office and is appralsed at $$690,000,$

with a useful life of $20$ years and a $$75,000$ salvage value. Land Improvements $1$ is valued at $$450,000$ and is expected to

last another $15$ years with no salvage value. The land is valued at $$1,860,000.$ The company also Incurs the following

additional costs.

Cost to demolish Building $1$

cost of additional land grading

cost to construct Building $3,$ having a useful life of $25$ years and a $$400,000$ salvage value

cost of new Land Improvements $2,$ having a $20-$year useful life and no salvage value

$$343,400$

$189,400$

$2,282,000$

$173,000$

Required:

Allocate the costs Incurred by Mitzu to the approprlate columns and total each column.