Hacienda Realty, a real estate management company, buys land that contains an abandoned apartment building for $9,000,000. It pays a construction company $1,000,000 to demolish the apartment building. Which of the following is correct?

Multiple Choice

The company would record $9,000,000 as the cost of the land.

The company would record $1,000,000 as demolition expense.

The company would record $10,000,000 million as the cost of the land.

The company would record $8,000,000 as the cost of the land.