A Company Purchased Property for a Building Site What Portion of These Costs Should Be Allocated to the with the Property

Multiple Choice

A company purchased property for a building site.The costs associated with the property were:
$\begin{array}{|l|r|}\hline \text { Purchase price } & \$ 175,000 \\\hline \text { Real estate commissions } & 15,000 \\\hline \text { Legal fees } & 800 \\\hline \text { Expenses of clearing the land } & 2,000 \\\hline \text { Expenses to remove old building } & 1,000\\\hline \end{array}$
What portion of these costs should be allocated to the cost of the land and what portion should be allocated to the cost of the new building?

A) $175,800 to Land; $18,800 to Building
B) $190,000 to Land; $3,800 to Building
C) $190,800 to Land; $1,000 to Building
D) $192,800 to Land; $0 to Building
E) $193,800 to Land; $0 to Building