Samtech manufacturing purchased land for $ 4 million. In addition to purchase price, samtech made the following expenditures in connection

with purchase of land and building.

Title insurance	$ 16,000
Legal fees for drawing the contract	5,000
pro-rated property taxes for the period after acquisition	36,000
State transfer fees	4,000

An independent appraisal estimated the fair values of the land and building, if purchased separately at $ 3.3 and $1.1 million

respectively. Shortly after acquisition, Samtech spent $ 82,000 to construct a parking lot and $40,000 for landscaping.

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

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

Demolition costs were $250,000 and the salvaged materials were sold for $6,000. In addition, Samtech spent $86,000 clearing

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

Required 1.

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

Assets	Initial Valuation
Land	$
Building
Land Improvements

Required 2.

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

Demolition costs were $250,000 and the salvaged materials were sold for $6,000, Samtech spent $86,000 clearing and grading

the land in preparation for the construction of new building. ( Enter your answers in whole numbers).

Assets	Initial valuation
Land	$
Building
Land improvements