22. Magoffin Ltd. purchased land for $175,000. In addition to the purchase price, Magoffin made the following expenditures: $7,500 for real estate commissions; $18,750 to demolish an old building already on the land; $10,000 to put in a new parking lot; $2,500 to install a sprinkler system on the property. How much should Magoffin capitalize as the value of the land on its balance sheet?

A. $211,250.

B. $175,000.

C. $182,500.

D. $213,750.

E. $201,250.