Reference no: EM132790243

On March 31, 2020, Capital Investment Advisers paid $4,490,000 for land with two buildings on it. The plan was to demolish Building 1 and build a new store (Building 3) in its place. Building 2 was to be used as a company office and was appraised at a value of $1,072,950. A lighted parking lot near Building 2 had improvements (Land Improvements 1) valued at $653,100. Without considering the buildings or improvements, the tract of land was estimated to have a value of $2,938,950.

Capital incurred the following additional costs:

1. Cost to demolish Building 1 $679,160
2. Cost of additional landscaping $268,020 
3. Cost to construct new building (Building 3) $2,468,000 
4. Cost of new land improvements near Building 2 (Land Improvements 2) $253,000

Problem 1. Allocate the costs incurred by Capital to the appropriate columns and total each column.