Merchant Company purchased property for a building site. The costs associated with the property were: Purchase price Real estate commissions Legal fees Expenses of clearing the land Expenses to remove old building $ 185,000 15,000 700 2,000 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? O $187.700 to Land: $19,000 to Building O $200.700 to Land: $6,000 to Building O $200,000 to Land: $6.700 to Building O $185,000 to Land: $21700 to Building O $206700 to Land: $0 to Building