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 $810,000, with a useful life of 20 years and a $75,000 salvage value. Land Improvements 1 is valued at $330,000 and is expected to last another 11 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 $ 347,400 193,400 2,222,000 173,000 Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column. Appraised Allocation of purchase price Value Percent of Total Appraised Value x Total cost of acquisition = Apportioned Cost Land x = Building 2 = Land Improvements 1 Totals Purchase Price Demolition Land grading New building (Construction cost) New improvements Totals = Land Land Land Building 2 Building 3 Improvements 1 Improvements 2