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Merchant Company purchased property for a building site. The costs associated with the property were: Purchase price………………………………………………………..$185,000Real estate commissions………………………………………… 15,000Legal fees……………………………………………………………….. 700Expenses of clearing the land…………………………………. 2,000Expenses to remove old building……………………………. 4,000What 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.

Merchant Company purchased property for a building site. The costs associated with the property were: Purchase price………………………………………………………..$185,000Real estate commissions………………………………………… 15,000Legal fees……………………………………………………………….. 700Expenses of clearing the land…………………………………. 2,000Expenses to remove old building……………………………. 4,000What 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.

Merchant Company purchased property for a building site. The costs associated with the property were: Purchase price………………………………………………………..$185,000Real estate commissions………………………………………… 15,000Legal fees……………………………………………………………….. 700Expenses of clearing the land…………………………………. 2,000Expenses to remove old building……………………………. 4,000What 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.

Merchant Company purchased property for a building site. The costs associated with the property were: Purchase price………………………………………………………..$185,000Real estate commissions………………………………………… 15,000Legal fees……………………………………………………………….. 700Expenses of clearing the land…………………………………. 2,000Expenses to remove old building……………………………. 4,000What 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.

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