A Local Government Purchased Land to Be Used for a New

Multiple Choice

A local government purchased land to be used for a new city hall to be built within the next five years. The purchase price was for the land's fair value, $1,500,000. The government financed the required $150,000 down payment by securing a short-term note with a local lending institution. The remaining $1,350,000 was financed by issuing certificates of participation. Costs incurred in issuing the certificates of participation totaled $60,000. The land should be capitalized in the General Capital Assets account in the amount of

A) $1,350,000.
B) $1,410,000.
C) $1,500,000.
D) $1,560,000.