Sheridan Flight Academy acquired a new site for its training operations. The company was able to find a small unused airport with an updated runway and hangar that could be used to accommodate a flight simulator, small aircraft, and classrooms. The location was ideal as it was close to the city centre with a large population base from which to attract students. Sheridan paid $6.40 million to acquire the site. Prior to providing financing for the purchase, the bank required that an appraisal be completed of the property. The evaluation ap/raisal report came back with the following estimated market values: land $3,587,580, building $2,454,660, and land improvements $251,760. Sheridan management explained, to the bank's satisfaction, that it paid the $106,000 premium because of the property's proximity to the city centre and access to a large population base from which to draw students. (a1) Allocate the \$6.40-million purchase price to the land, building, and land improvements