Humphrey Company purchased a property (including land and building). The company acquired the property in exchange for a 15-year mortgage for $1,800,000. Their insurance company appraised the components as follows:

Land	$ 400,000
Building	1,400,000
Parking lot	200,000

What should be the cost basis for the building?

Select one:

A. $1,244,444

B. $1,400,000

C. $1,200,000

D. $1,260,000