Bernice purchased land and a building for use in connection with her business. The costs associated with this purchase were:

Cash down payment	$ 40,000
Mortgage on property	350,000
Survey costs	2,000
Title and transfer taxes	2,500
Charges for hookup of gas, water, and sewer lines	3,000
Seller-owed back property taxes paid by Bernice	5,000

What is Bernice's tax basis for the land and building?

a. $ 44,500

b. $394,500

c. $397,500

d. $402,500