January 2010,Giant Green Company Pays $3,000,000 for a Tract of Land

January 2010,Giant Green Company pays $3,000,000 for a tract of land with two buildings on it.It plans to demolish Building 1 and build a new store in its place.Building 2 will be a company office; it is appraised at $742,000,with a useful life of 25 years and a $75,000 salvage value.A lighted parking lot near Building 1 has improvements (Land Improvements 1) valued at $400,500 that are expected to last another 18 years with no salvage value.Without the buildings and improvements,the tract of land is valued at $2,020,600.Giant Green also incurs the following additional costs:
$\begin{array}{llr} \text { Cost to demolish Building 1 } &\$400,200\\ \text {Cost of additional land grading } &200,000\\ \text {Cost to construct new building (Building 3) , having a useful life of 25 } &\\ \text {years and a \$ 322,000 salvage value } &3,851,000\\ \text { Cost of new land improvements (Land Improvements 2) near Building 2 } &\\ \text { having a 20 -year useful life and no salvage value } &122,000\\\end{array}$


What is the amount that should be recorded for Building #1?

A) $600,200
B) $742,000
C) $667,000
D) $380,100
E) $487,921