Chapter Homework 2 3 P 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 velue and will be demolished Building 2 will be an office and is sppraised at $793.000 with a useful site of 20 years and a $20,000 salvage value. Land improvements 1 is valued at $427000 and is expected to lost another 14 years with no salvage value. The land is valued at $1830.000. The company also incurs the following additional costs Coto demolian buldin Cost of additional and grading Cost to contres Bellding 3, having a useful life of 25 years and 1400, vege 343,440 Required: 1. Allocate the costs incurred by Mitru to the appropriate columns and total each column Abocation of Purchase Price Te Appraised Land 1.830.000 Building 2 750,000 20% Land improvements 427,000 2.000.000 2,600,000 2.000.000 Totals $ 3.550.000 20% S Land Building 2 Building3 Purchase Price Demon Land grading New building (Construction cost) New improvements Toba Apported C 676,000 476.200 Land bprovements 1 Land 01 05 0 Check my work