Required information

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

On January $1,$ Mitzu Company 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

$$630,000,$ with a useful life of $20$ years and a $$90,000$ salvage value. Land Improvements $1$ is valued at $$480,000$ and

is expected to last another $16$ 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 $$402,000$ salvage valuerr $2,302,000$

Cost of new Land Improvements $2,$ having a $20-$year useful life and no salvage value $173,000$

Required:

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