A company incurred the following costs associated with the purchase of a piece of land that it will use to re-build an office building:

Purchase price of the land $ 400,000

Sale of salvaged parts already on land $ 20,000

Demolition of the old building $ 30,000

Ground-breaking ceremony (food and supplies) $ 1,500

Land preparation and leveling $ 7,500

What amount should be recorded for the purchase of the land?

A) $437,500.

B) $417,500.

C) $439,000.

D) $419,000.

Answer: B