Bluesy Company Acquired Land and Paid for It in Full

Multiple Choice

Bluesy Company acquired land and paid for it in full by issuing $700,000 of its 10 percent bonds payable and 40,000 shares of its common stock,par $10.The stock was selling at $21 per share and the bonds were trading at 102.What amount should Bluesy record as the cost of the land?

A) $1,100,000
B) $1,540,000
C) $1,554,000
D) $1,604,000