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: $\begin{array} { l } \text { Purchase price}&\$185,000 \\ \text {Real estate commissions }& 15,000\\ \text {Legal fees }&700 \\ \text {Expenses of clearing the land }&2,000 \\ \text { Expenses to remove old building}&4,000 \\\end{array}$
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) $200,000 to Land; $6,700 to Building.
B) $185,000 to Land; $21,700 to Building.
C) $200,700 to Land; $6,000 to Building.
D) $206,700 to Land; $0 to Building.
E) $187,700 to Land; $19,000 to Building.