On December 1, 2014, Xeon Company Bought Land and an Accompanying

Multiple Choice

On December 1, 2014, 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