Required information [The following information applies to the questions displayed below. On January 1, Mitzu Co, pays a lump sum amount of $2,700,000 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 $720,000, with a useful life of 20 years and a $85,000 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 $1,830,000. The company also incurs the following additional costs. $ 341,400 195,460 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, Bee salvage value Cost of new Land Improvements 2 having a 20-year useful life and no salvage value 2,222,888 175,000 Required: 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 Land Building 2 Land improvements 1 Totals X 5 $ 0 0% Land Building 2 Building 3 Land Improvements Land Improvements 2 Purchase Price Demolition Land grading Now huinn Construction con RVREERIVRE Value Appraised Value acquisition X X Land Building 2 Land improvements 1 Totals X $ 0 0% 0 Land Building 2 Building 3 Land Improvements 1 Land Improvements 2 9:34 Purchase Price Demolition Land grading New building (Construction cost) New improvements Totals 0 S os 0 0 $ $ 2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1 View transaction list Journal entry worksheet