Fresh N' Fit Cuisine
Fresh N' Fit Cuisine Purchased Land

Fresh n' Fit Cuisine
Fresh n' Fit Cuisine purchased land and a building for $320,000 to open a new restaurant. The building's fair market value at the time of purchase was $220,000. In addition, the following costs were incurred prior to the restaurant's opening:
$\begin{array}{lr}\text { Transfer taxes } & \$ 10,000 \\\text { Interest incurred on the mortgage loan taken out to make the purchase } & 4,000 \\\text { Legal and real estate fees } & 15,000 \\\text { Repaving the parking lot } & 6,000\end{array}$
-According to the figure Fresh n' Fit Cuisine,how much will be recorded as land improvements?

A) $6,000
B) $25,000
C) $106,000
D) $125,000