Samtech manufacturing purchased land and building for $4 million. in addition to the purchase price, samtech made the following expenditures in connection with the purchase of the land and building:
title insurance $ 16,000
legal fees for drawing the contract 5,000
pro-rated property taxes for the period after acquisition 36,000
state transfer fees 4,000
an independent appraisal estimated the fair values of the land and building, if purchased separately, at $3.3 and $1.1 million, respectively. shortly after acquisition, samtech spent $82,000 to construct a parking lot and $40,000 for landscaping.
required:
determine the initial valuation of each asset samtech acquired in these transactions. (enter your answers in whole dollars.)
assets initial valuation
land
building
land improvements