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 $ 25,000 Legal fees for drawing the contract 9,500 Pro rated property taxes for the period after acquisition 45,000 State transfer fees 4,900 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 $91,000 to construct a parking lot and $49,000 for landscaping Required 1 Determine the initial valuation of each asset Samtech acquired in these transactions (Enter your answers in whole dollars ) Assets Initial Valuation Land Building Land improvements 2 Determine the initial valuation of each asset, assuming that immediately after acquisition, Samtech demolished the building Demolition costs were $340,000 and the salvaged materials were sold for $5,500 In addition, Samtech spent $88,000 clearing and grading the land in preparation for the construction of a new building (Enter your answers in whole dollars ) Assets Initial Valuation Land Building Land improvements

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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

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	$	25,000
Legal fees for drawing the contract		9,500
Pro-rated property taxes for the period after acquisition		45,000
State transfer fees		4,900

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 $91,000 to construct a parking lot and $49,000 for landscaping.

Required:

Determine the initial valuation of each asset Samtech acquired in these transactions. (Enter your answers in whole dollars.)

Assets	Initial Valuation
Land
Building
Land improvements

2.	Determine the initial valuation of each asset, assuming that immediately after acquisition, Samtech demolished the building. Demolition costs were $340,000 and the salvaged materials were sold for $5,500. In addition, Samtech spent $88,000 clearing and grading the land in preparation for the construction of a new building. (Enter your answers in whole dollars.)