During January $20$X$0,$ Summit Co$.$ made long$-$term improvements to a recently leased building, which is not of any specialized nature. The lease agreement provides for neither a transfer of title to Summit nor a bargain purchase option. The present value of the minimum lease payments equals $85\%$ of the building's market value, and the lease term equals $60\%$ of the building's economic life. Should assets be recognized for the building and the leasehold improvements?

I. Building.

II$.$ Leasehold improvements.