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

Title insurance	$	23,000
Legal fees for drawing the contract		8,500
Pro-rated property taxes for the period after acquisition		43,000
State transfer fees		4,700

An independent appraisal estimated the fair values of the land and building, if purchased separately, at $3 and $2 million, respectively. Shortly after acquisition, Semtech spent $89,000 to construct a parking lot and $47,000 for landscaping.

Required:

1.	Determine the initial valuation of each asset Semtech 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, Semtech demolished the building. Demolition costs were $320,000 and the salvaged materials were sold for $9,500. In addition, Semtech spent $86,000 clearing and grading the land in preparation for the construction of a new building. (Enter your answers in whole dollars.) Assets : Intitial Valuation Land: Building: Land Inmprovements: Step by step anwser would be best to learn how to do this. thanks