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

company

's land

?

A

$880,000

B

$960,000

C

$1,040,000

D

$1,080,000

Whats the process to arrive at answer D