A company paid $130,000, plus a 8% commission and $5,000 in closing costs for a property. The property included land appraised at $87,500, land improvements appraised at $35,000, and a building appraised at $52,500. What should be the allocation of this property's costs in the company's accounting records?

Land $65,000; Land Improvements, $26,000; Building, $39,000

Land $26,000; Land Improvements, $39,000; Building, $65,000

Land $87,500; Land Improvements; $35,000; Building; $52,500

Land $29,080; Land Improvements, $43,620; Building, $72,700

Land $72,700; Land Improvements, $29,080; Building, $43,620