The following information applies to the questions displayed below.J In January 2017, Mitzu Co. pays $2,700,000 for a tract of land with two buildings on it. It plans to demolish Building1 and build a new store in its place. Building 2 will be a company office; it is appraised at $854,000, with a useful life of 20 years and a $75,000 salvage value. A lighted parking lot near Building 1 has improvements (Land Improvements 1) valued at $396,500 that are expected to last another 13 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 Cost of additional land grading Cost to construct new building (Building 3), having a useful life of 25 343,400 191,400 2,242,000 173,000 years and a $400,000 salvage value Cost of new land improvements (Land Improvements 2) near Building 2 having a 20-year useful life and no salvage value Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column Percent of Total Total cost of Appraised Value Allocation of purchase price AppraisedX acquisitionApportioned Cost Value Land Building 2 Land Improvements 1 Totals $1,799,500 854,000 396,500 $ 3,050,000 x 2,700,000 2,700,000 2,700,000 |- 0% Land Land Land Building2 Building3 Improvements 1Improvements2 Purchase Price Demolition Land grading New building (Construction cost) New improvements Totals