Required Information [The following information applies to the questions displayed below.) On January 1, Mitzu Company pays a lump-sum amount of $2,650,000 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 $619,500, with a useful life of 20 years and a $70,000 salvage value. Land Improvements 1 is valued at $619,500 and is expected to last another 21 years with no salvage value. The land is valued at $1,711,000. 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 $ 346,400 189,400 2,222,000 178,000 Required: . Allocate the costs incurred by Mitzu to the appropriate columns and total each column. Answer is not complete. Allocation of Purchase Price Appraised Value Percent of Total Appraised Value 65% Total cost of acquisition Apportioned Cost S $ 18% Land Building 2 Land Improvements 1 Totals 11 $ 1,711,000 619,500 619,500 $ 2,950,000 2,650,000 2,650,000 2,650,000 1,590,000 636,000 424,000 2,650,000 18% 11 101% $ Land Building 2 Building 3 Land Improvements Land Improvements 2 Purchase Price Demolition Land grading New building Construction cost) New improvements Totals $ 0 S 0 S 0 0