Kolonial Township Acquired a Building and the 3 Acres of Land

Kolonial Township acquired a building and the 3 acres of land on which it is located.The total purchase price was $2,500,000.For valuation purposes,the company contacted three local commercial real estate agents,who gave the following valuation estimates:

$\begin{array}{lrr} & \text { Land } & \text { Building } \\\text { M. Mulhan }& \$ 900,000 & \$ 2,100,000 \\ \text { H. Ivan } & \$ 300,000 & \$ 2,700,000 \\\text { T. Grasso }& \$ 600,000 & \$ 2,400,000\end{array}$
If Kolonial Township used the valuation made by H.Ivan,and assuming it paid cash for the land and building,what journal entry would Kolonial Township make to record the purchase?

A) $\begin{array} { l l l } \text { Land } & 750,000 & \\\text { Buiding } & 1,750,000 & \\\text { Cash } & & 2,500,000\\\end{array}$

B) $\begin{array}{lccc}\text { Land } & 500,000 & \\\text { Building } & 2,000,000& \\\text { Cash } & &2,500,000 \\\end{array}$

C) $\begin{array}{lccc}\text { Land } & 300,000 & \\\text { Buiding } & 2,700,000 & \\\text { Cash } & & 300,000 \\\end{array}$

D) $\begin{array}{lccc}\text { Land } & 250,000 & \\\text { Building } & 2,250,000 & \\\text { Cash } & & 2,500,000\\\end{array}$

E) $\begin{array}{lccc}\text { Land } & 300,000 & \\\text { Building } & 2,750,000 & \\\text { Cash } & & 2,500,000 \\\text { Gain on Purchase of Assets } & & 500,000\end{array}$