ABC CoPurchased Land and Building at a Price of $480,000

Multiple Choice

ABC Co.purchased land and building at a price of $480,000.ABC also incurred a real estate broker's fee of $5,000 and legal fees of $2,000 to complete the purchase.ABC paid $3,000 to obtain a real estate appraisal prior to the purchase.The appraisal indicated that,valued separately,the land was worth $260,000 and the building was worth $240,000.The land should be recorded in the accounting records for:

A) $249,600.
B) $253,240.
C) $254,800.
D) $259,600.