January 2010, Giant Green Company pays $3,000,000 for a tract of land with two buildings on it. It plans to demolish Building 1 and build a new store in its place. Building 2 will be a company office; it is appraised at $742,000, with a useful life of 25 years and a $75,000 salvage value. A lighted parking lot near Building 1 has improvements (Land Improvements 1) valued at $400,500 that are expected to last another 18 years with no salvage value. Without the buildings and improvements, the tract of land is valued at $2,020,600. Giant Green also incurs the following additional costs: What is the amount that should be recorded for Land?

A) $2,516,600
B) $2,020,600
C) $3,851,000
D) $1.916.400
E) $3.000.000

Cost to demolish Building 1 $ 400,200 Cost of additional land grading 200,00 Cost to construct new building (Building 3). having a useful life of 25 years and a $322,000 salvage value 3,815,000 Cost of new land improvements (Land Improvements 2) near Building 2 having a 20-vear useful life and no salvage value 122,000