Laramie Company Paid $800,000 for a Purchase That Included Land

Multiple Choice

Laramie Company paid $800,000 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, $100,000, Building, $740,000, and Office Furniture, $160,000. What is the cost that should be allocated to the land?

A) $80,000
B) $70,000
C) $100,000
D) $107,000