Carlton Purchases Land for $300,000

Multiple Choice

Carlton purchases land for $300,000.He incurs legal fees of $5,000 associated with the purchase.He subsequently incurs additional legal fees of $20,000 in having the land rezoned from agricultural to residential.He subdivides the land and installs streets and sewers at a cost of $600,000.What is Carlton's basis for the land and the improvements?

A) $300,000.
B) $900,000.
C) $905,000.
D) $925,000.
E) None of the above.