Nyguen Company Bought Real Estate, on Which There Was an Old

Multiple Choice

Nyguen Company bought real estate, on which there was an old office building, for $700,000. They paid $90,000 in cash as a down payment and signed a 6% mortgage for the remainder. They immediately had the old building razed at a net cost of $30,000, the salvaged materials were sold for $4,200. Attorneys were paid $7,000 in connection with the land purchase and an additional $3,000 in connection with permits and zoning variances necessary for Nyguen's new office building. $25,000 was paid for excavation for the basement of the new building. $2,400,000 was paid for construction of the new building, and $95,000 was paid for a parking lot and necessary walkways and driveways. The new office building should be recorded at:

A) $2,400,000.
B) $2,428,000.
C) $2,425,000.
D) $2,400,000