Acme Purchased a Property That Included Both Land and a Building

Multiple Choice

Acme purchased a property that included both land and a building for $200 000. Acme hired an appraiser who determined that the market value of the land was $140 000 and the market value of the building was $50 000. At what amount should Acme record the building cost?

A) $52 632
B) $200 000
C) $140 000
D) $147 368