Required information [The following information applies to the questions displayed below.] On January 1, Mitzu Co. 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 $649,000, with a useful life of 20 years and a $75,000 salvage value. Land Improvements 1 is valued at $560,500 and is expected to last another 19 years with no salvage value. The land is valued at $1,740,500. 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 21 having a 20-year useful life and no salvage value. $ 340,400 191,400 2,202,000 168,000 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 Land x Building 2 Land Improvements 1 Totals x x 0 0% Purchase Price Demolition Land grading New building (Construction cost) New improvements Totals Land Building 2 Building 3 NO Apportioned Cost $ Land Improvements 1 Land Improvements 2 $ 0 $ 0 $ 0 $ 0 $