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In January 2017, Mitzu Co. pays $2,700,000 for a tract of land with two buildings on it. It plans to demolish Building 1 and build a new store in its place. Building 2 will be a company office; it is appraised at $701,500, with a useful life of 20 years and a $85,000 salvage value. A lighted parking lot near Building 1 has improvements (Land Improvements 1) valued at $549,000 that are expected to last another 18 years with no salvage value. Without the buildings and improvements, the tract of land is valued at $1,799,500. The company also incurs the following additional costs:

Cost to demolish Building 1	$	347,400
Cost of additional land grading		189,400
Cost to construct new building (Building 3), having a useful life of 25 years and a $398,000 salvage value		2,262,000
Cost of new land improvements (Land Improvements 2) near Building 2 having a 20-year useful life and no salvage value		173,000

Required 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column Percent of Total Appraised Value Total cost of Apportioned Cost Allocation of purchase price Appraised Value acquisition S1,799,500 Land x $ 2,700,000 Building 2 701,500 2,700,000 549,000 2,700,000 Land Improvements 1 S3,050,000 0% Totals 0 Building2 Building3 Land Improvements 1 Improvements 2 S1,799,500 Purchase Price 347,400 Demolition Land grading 189,400 New building (Construction cost) 2,262,000 173,000 New improvements $ 2,336,300 S $ 2,262,000 173,000 Totals