Required Information

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

On January $1,$ Mitzu Company pays a lump$-$sum amount of $$2,750,000$ for land, Bullding $1,$ Bulding $2,$ and

Land Improvements $1.$ Building $1$ has no value and will be demolished. Bullding $2$ will be an office and is

appralsed at $$810,000,$ with a useful life of $20$ years and a $$85,000$ salvage value. Land Improvements $1$ is

valued at $$300,000$ and is expected to last another $10$ years with no salvage value. The land is valued at

$$1,890,000.$ 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 $$402,$ salvage value

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

zequired:

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