Sun and flight academy acquired a new site for it's training operations. The company was able to find a small unused airport with an updated runway and hanger that could be used to accommodate a flight simulator, snack 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. Sunland paid $7.80 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 appraisal report came back with the following estimated market values: land $3,396,600, building $2,453,100 and land improvements $440,300. Sunland management explained, to the bank's satisfaction, that it paid the $1,510,000 premium because of the propertys proximity to the city centre and access to a large population base from which to draw students. (a1) Allocate the $ 7.80 million purchase price to the land building and land improvements. ALLOCATED COST land Building Land improvements