A company buys land with a building on it for $1 million. The building was valued at $200,000 but was immediately torn down to make way for a new office building. First, though, the land had to be graded at a cost of $80,000. The new building was constructed for $4 million. A parking lot was also built at that time for $160,000. What should be reported as the cost of this companys land?

$960,000

$1,040,000

$1,080,000

$880,000