A Building with an Appraisal Value of $154,000 Is Made

Multiple Choice

A building with an appraisal value of $154,000 is made available at an offer price of $172,000. The purchaser acquires the property for $40,000 in cash, a 90-day note payable for $45,000, and a mortgage amounting to $75,000. The cost basis recorded in the buyer's accounting records to recognize this purchase is

A) $154,000
B) $172,000
C) $160,000
D) $120,000