Samtech Manufacturing purchased land and a building for $$3$ million. In addition to the purchase price, Samtech made the following expenditures in connection with the purchase of the land and building:

Title insurance $ $36,000$

Legal fees for drawing the contract $10,000$

Pro$-$rated property taxes for the period after acquisition $56,000$

State transfer fees $6,000$

An independent appraisal estimated the fair values of the land and building, if purchased separately, at $$3$ and $$1$ million, respectively. Shortly after acquisition, Samtech spent $$102,000$ to construct a parking lot and $$60,000$ for landscaping.

Required:

Determine the initial valuation of each asset Samtech acquired in these transactions.

Determine the initial valuation of each asset, assuming that immediately after acquisition, Samtech demolished the building. Demolition costs were $$450,000$ and the salvaged materials were sold for $$7,500.$ In addition, Samtech spent $$99,000$ clearingRequired $1$Required $2$

Determine the initial valuation of each asset Samtech acquired in these transactions.

Note: Enter your answers in dollars not in millions of dollars.

Assets Initial Valuation

Land:

Building :

Land improvements