Samtech Manufacturing purchased land and 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$21,000Legal fees for drawing the contract7,500Pro-rated property taxes for the period after acquisition41,000State transfer fees4,500

An independent appraisal estimated the fair values of the land and building, if purchased separately, at $3.9 and $1.1 million, respectively. Shortly after acquisition, Samtech spent $87,000 to construct a parking lot and $45,000 for landscaping.

Required:1.Determine the initial valuation of each asset Samtech acquired in these transactio