The Building Used in Manuel's Business Was Condemned by the City

The building used in Manuel's business was condemned by the city of Mobile. Manuel received a condemnation award of $220,000. He paid $800 in lawyer's fees and $600 for an appraisal of the property. Manuel's adjusted basis in the building was $120,000. Manuel reinvests in similar property costing $200,000, and Manuel makes the proper election regarding the property. Manuel's basis in the new building is

A) $102,400.
B) $120,000.
C) $200,000.
D) $121,400.