Fresh N' Fit Cuisine Purchased Land and a Building for $320,000

Multiple Choice

Fresh n' Fit Cuisine purchased land and a building for $320,000 so that it could open a new restaurant. The building's fair market value at the time of purchase was $220,000. In addition, the following costs were incurred prior to the restaurant's opening: How much will be recorded as land improvements?

A) $25,000
B) $6,000
C) $106,000
D) $125,000