Hubert Company Purchased a Property (Including Land and Building)

Multiple Choice

Hubert Company purchased a property (including land and building) . The company acquired the property in exchange for a 15-year mortgage for $1,800,000. Their insurance company appraised the components as follows:
What should be the cost basis for the building?

A) $1,260,000
B) $1,400,000
C) $1,200,000
D) $1,244,444