Fresh n' Fit Cuisine purchased land and a building for $320,000 so that it could open a new restaurant. The building's fair market value at the time of purchase was $220,000. In addition, the following costs were incurred prior to the restaurant's opening:

Property transfer taxes	$10,000
Interest incurred on the mortgage loan taken out to make the purchase	4,000
Attorney and real estate agent's fees	15,000
Repaving the parking lot	6,000

How much will be recorded as land improvements?

a. $125,000

b. $25,000

c. $106,000

d. $6,000