Henry Company Purchased a Property (Including Land and Building)

Multiple Choice

Henry Company purchased a property (including land and building) . The company acquired the property in exchange for a 15-year mortgage for $5,400,000. Their insurance company appraised the components as follows:
What should be the cost basis for the building?

A) $3,780,000
B) $3,000,000
C) $3,600,000
D) $3,633,333