Fresh N' Fit Cuisine Purchased Land and a Building for $320,000

Multiple Choice

Fresh n' Fit Cuisine purchased land and a building for $320,000 so that it could open a new restaurant.The building's fair market value at the time of purchase was $220,000.In addition,the following costs were incurred prior to the restaurant's opening: $\begin{array}{l}\begin{array}{lll} \text { Tranafer taxes } \\ \text { Interest incurred on the mortgage loan taken out to make the purchase } \\ \text { Attomey and real estate agent'sfees } \\ \text { Repave the parkinglot } \\\end{array}\begin{array}{lll}\$ 10,000 \\4,000 \\15,000 \\6,000\end{array}\end{array}$ How much will be recorded as land improvements?

A) $25,000
B) $6,000
C) $106,000
D) $125,000