Samtech Manufacturing purchased land and a building for $$4$ million. In addition to the purchase price, Samtech made the following

expenditures in connection with the purchase of the land and building:

Title insurance

Legal fees for drawing the contract

Pro$-$rated property taxes for the period after acquisition

State transfer fees

An independent appraisal estimated the fair values of the land and building, if purchased separately, at $$3$ and $$2$ million,

respectively. Shortly after acquisition, Samtech spent $$99,000$ to construct a parking lot and $$57,000$ 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 $$420,000$ and the salvaged materials were sold for $$9,500.$ In addition, Samtech spent $$96,000$

clearing and grading the land in preparation for the construction of a new building.

Complete this question by entering your answers in the tabs below.

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

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

Land

Building

Land improvementsSamtech Manufacturing purchased land and a building for $$4$ million. In addition to the purchase price, Samtech made the following

expenditures in connection with the purchase of the land and building:

An independent appraisal estimated the fair values of the land and building, if purchased separately, at $$3$ and $$2$ million,

respectively. Shortly after acquisition, Samtech spent $$99,000$ to construct a parking lot and $$57,000$ 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 $$420,000$ and the salvaged materials were sold for $$9,500.$ In addition, Samtech spent $$96,000$

clearing and grading the land in preparation for the construction of a new building.

Complete this question by entering your answers in the tabs below.

Determine the initial valuation of each asset, assuming that immediately after acquisition, Samtech demolished the building.

Demolition costs were $$420,000$ and the salvaged materials were sold for $$9,500.$ In addition, Samtech spent $$96,000$

clearing and grading the land in preparation for the construction of a new building.

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