A Company Purchased Property for a Building Site

Multiple Choice

A company purchased property for a building site. The costs associated with the property were: 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.