Laramie Company Paid $1,000,000 for a Purchase That Included Land

Multiple Choice

Laramie Company paid $1,000,000 for a purchase that included land, building, and office furniture. An appraiser provided the following estimates of the market values of the assets if they had been purchased separately: Land, $176,000, Building, $682,000, and Office Furniture, $242,000. Based on this information the cost that would be allocated to the land is: (Do not round intermediate calculations.)

A) $131,840.
B) $160,000.
C) $176,000.
D) $197,094.