A company acquired an office building on three acres of land for a lump-sum price of $2,400,000. The building was completely equipped. According to independent appraisals, the fair values were $1,300,000, $780,000, and $520,000 for the building, land, and equipment, respectively. At what amount would the company record the building?

A) $720,000.

B) $1,300,000.

C) $1,200,000.

D) None of these answer choices are correct.

Answer: C