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Required information [The following information applies to the questions displayed below.] Part 3 of 3 On January 1, Mitzu Company pays a lump-sum amount of

Required information [The following information applies to the questions displayed below.] Part 3 of 3 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 $810,000, with a useful life of 20 years and a $75,000 salvage value. Land Improvements 1 is valued at $330,000 and is expected to last another 11 years with no salvage value. The land is valued at $1,860,000. The company also incurs the following additional costs. Cost to demolish Building 1 Cost of additional land grading Cost to construct Building 3, having a useful life

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