On December 1,2017,Xeon Company Bought Land and an Accompanying Warehouse

Multiple Choice

On December 1,2017,Xeon Company bought land and an accompanying warehouse from Yen Company for $800,000.The fair market values of the land and the building at the time of purchase were $700,000 and $300,000,respectively.How much of the purchase price should Xeon Company allocate to the land,and how much should be allocated to the building?

A) $457,143 and $342,857,respectively
B) $700,000 and $300,000,respectively
C) $560,000 and $240,000,respectively
D) $500,000 and $300,000,respectively