Laramie Company Paid $2,300,000 for a Purchase That Included Land

Multiple Choice

Laramie Company paid $2,300,000 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, $696,000, Building, $864,000, and Office Furniture, $840,000. What is the cost that should be allocated to the land?

A) $667,000
B) $465,160
C) $696,000
D) $830,896