On August 7 Gideon Ridge Restaurant Purchased a Building in Exchange

Multiple Choice

On August 7 Gideon Ridge Restaurant purchased a building in exchange for a note with a face amount of $1660000.The cost of the land was $600000.The building cost $900000 and the parking lot was valued at $160000.Use the following tabular analysis to record the transaction.

A) Increase Building and increase Notes Payable $1660000.
B) Increase Land $600000 increase Land Improvements $160000 increase Building $900000 and increase Notes Payable $1660000.
C) Increase Land $600000 increase Land Improvements $160000 increase Building $900000 and decrease Notes Payable $1660000.
D) Increase Building $760000 increase Land $600000 and increase Notes Payable $1660000.