Required information [The following information applies to the questions displayed below.] On January 1, Mitzu Company pays a lump-sum amount of $2,650,000 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 $750,000, with a useful life of 20 years and a $75,000 salvage value. Land Improvements 1 is valued at $420,000 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 $402,000 salvage value Cost of new Land Improvements 2, having a 20-year useful life and no salvage value $ 344,400 189,400 2,222,000 178,000 Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column. X Answer is complete but not entirely correct. Allocation of Purchase Price Appraised Value Percent of Total Appraised Value x Total cost of acquisition II Apportioned Cost Land 69% ? $ II = $ 28% X ? Building 2 Land Improvements 1 II $ 1,830,000 750,000 420,000 $ 3,000,000 2,650,000 2,650,000 2,650,000 1,828,500 X 742,000 X 424,000 X 2,994,500 16% X X 11 Totals 113% $ Land Building 2 Building 3 Land Improvements 1 $ 742,000 Land Improvements 2 $ 0 Purchase Price $ 742,000 X $ 0 Demolition $ 1,828,500 344,400 189,400 0 0 0 0 0 0 0 0 Land grading New building (Construction cost) New improvements 0 0 2,222,000 0 0 0 0 0 0 178,000 178,000 Totals $ 2,362,300 $ 742,000 $ 2,222,000 $ 742,000 $