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, 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 $600,000, with a useful life of 20 years and a $70,000 salvage value. Land Improvements 1 is valued at $570,000 and is expected to last another 19 years with no salvage value. The land is valued at $1,830,000. 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 value Cost of new Land Improvements 2, having a 20-year useful life and no salvage value Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column. $ 339,400 187,400 2,242,000 178,000 Allocation of Purchase Price Appraised Value Percent of Total Appraised Value Total cost of acquisition Land Building 2 Land Improvements 1 Totals Purchase Price Demolition Land grading New building (Construction cost) New Improvements Totals Apportioned Cost Land Building 2 Building 3 Land Improvements 1 Land Improvements 2