Donnie Demolition acquires an office building and the underlying land for $5,900,000 and incurs $100,000 in expenses directly related to the acquisition. Assume that $1,200,000 is properly allocated to the value of the land. Donnie believes the property will have more value if sold as vacant land and demolishes the building at a cost of $200,000. What effect will the demolition have for tax purposes?

a. $0 loss; $4,960,000 basis in the building; $1,240,000 basis in land

b. $0 loss; $6,200,000 basis in land

c. $4,800,000 loss; $1,400,000 basis in land

d. $5,000,000 loss; $1,200,000 basis in land

e. $4,700,000 loss; $1,500,000 basis in land