A building with an appraisal value of $127,085 is made available at an offer price of $150,980. The purchaser acquires the property for $37,892 in cash, a 90-day note payable for $24,353, and a mortgage amounting to $57,782. The cost basis recorded in the buyer's accounting records to recognize this purchase is

a. $150,980

b. $120,027

c. $127,085

d. $113,088