Merchant Company Purchased Property for a Building Site What Portion of These Costs Should Be Allocated to the Associated

Merchant Company purchased property for a building site. The costs associated with the property were: $$\begin{array} { | l | r | } \hline \text { Purchase price } & \$ 185,000 \\\hline \text { Real estate commissions } & 15,000 \\\hline \text { Legal fees } & 700 \\\hline \text { Expenses of clearing the land } & 2,000 \\\hline \text { Expenses to remove old building } & 4,000 \\\hline\end{array}$$ 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) $187,700 to Land; $19,000 to Building.
B) $200,700 to Land; $6,000 to Building.
C) $200,000 to Land; $6,700 to Building.
D) $185,000 to Land; $21,700 to Building.
E) $206,700 to Land; $0 to Building.