Leland Co Paid $400,000 for a Purchase That Included Land, Building

Multiple Choice

Leland Co. paid $400,000 for a purchase that included land, building, and office furniture. An appraiser provided the following estimates of the market values of the assets if they had been purchased separately: Land, $50,000, Building, $370,000, and Office Furniture, $80,000. Based on this information the cost that would be allocated to the land is:

A) $35,000.
B) $40,000.
C) $50,000.
D) $53,500.