explain SHOW WORK 19. Merchant Company purchased property for a building site. The costs associated with the property were:

Purchase price.................................................................$185,000

Real estate commissions................................................15,000

Legal fees..........................................................................700

Expenses of clearing the land........................................2,000

Expenses to remove old building..................................4,000

What portion of these costs should be allocated to the cost of the land and what portion should be allocated to the cost of the new building?

a. $200,000 to Land; $6,700 to Building.

b. $185,000 to Land; $21,700 to Building.

c. $200,700 to Land; $6,000 to Building.

d. $206,700 to Land; $0 to Building.

e. $187,700 to Land; $19,000 to Building.