Exercise 11-12 In 1990, Buffalo Company completed the construction of a building at a cost of $2,180,000 and first occupied it in January 1991. It was estimated that the building will have a useful life of 40 years and a salvage value of $65,400 at the end of that time. Early in 2001, an addition to the building was constructed at a cost of $545,000. At that time, it was estimated that the remaining life of the building would be, as originally estimated, an additional 30 years, and that the addition would have a life of 30 years and a salvage value of $21,800. In 2019, it is determined that the probable life of the building and addition will extend to the end of 2050, or 20 years beyond the original estimate