Empire Corporation Purchased an Office Building for $500,000 Cash on April

Multiple Choice

Empire Corporation purchased an office building for $500,000 cash on April 1.Prior to renting it out to tenants on July 1,Empire spent $200,000 on materials and labor to renovate the property.It funded $50,000 of the renovation cost with its own funds and borrowed the remaining $150,000.As of July 1,$2,000 of interest had been paid to the bank,but none of the principal had been repaid.The basis of the building on July 1 is

A) $500,000.
B) $700,000.
C) $702,000.
D) $502,000.