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On January $1,$ Mitzu Company pays a lump$-$sum amount of $$2,600,000$ for land, Building $1,$ Building $2,$ and Land Improvements $1.$ Building $1$ has no value and will be demolished. Building $2$ will be an office and is appraised at $$793,000,$ with a useful life of $20$ years and a $$75,000$ salvage value. Land Improvements $1$ is valued at $$427,000$ and is expected to last another $14$ years with no salvage value. The land is valued at $$1,830,000.$ The company also incurs the following additional costs.

Cost to demolish Building $1$

Cost of additional land grading

Cost to construct Building $3,$ having a useful life of $25$ years and a $$398,000$ salvage value

Cost of new Land Improvements $2,$ having a $20-$year useful life and no salvage value

$$340,400$

$189,400$

$2,302,000$

$168,000$

Problem $8-3$A $($Algo$)$ Part $1$

Required:

Allocate the costs incurred by Mitzu to the appropriate columns and total each column.

$\backslash$table$[[$Allocation of Purchase Price,,$\backslash$table$[[$ppraised$],[$Value$]],\backslash$table$[[$Percent of$],[$Total$],[$Appraised$],[$Value$]],x,,\backslash$table$[[$Total cost of$],[$acquisition$]],=,$Apportioned Cost$],[$Land$,$$$,1,830,000,0\%,x,$$$,2,600,000,=,,],[$Building $2,,793,000,0\%,x,,2,600,000,=,,],[$Land Improvements $1,,427,000,0\%,x,,2,600,000,=,,],[$Totals$,$$$,3,050,000,0\%,,,,,$$$,],[,,$Land,Building $2,,,$Building $3,,\backslash$table$[[$Land$],[$Improvements $1]],\backslash$table$[[$Land$],[$Improvements $2]]],[$Purchase Price,,,,,,,,,$],[$Demolition$,5,,,,,,,,]]$

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