Howe - Whicommetedo Question 1 - Chapter 8 Homev. x Homework i ! Required information [The following information applies to the questions displayed below.] On January 1, Mitzu Company pays a lump-sum amount of $2,700,000 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 $590,000, with a useful life of 20 years and a $90,000 salvage value. Land Improvements 1 is valued at $590,000 and is expected to last another 20 years with no salvage value. The land is valued at $1,770,000. The company also incurs the following additional costs. Cost to demolish Building 1 Cost of additional land