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 $ 180,000 15,500 1,300 2,500 1,500 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? Multiple Choice $181,300 to Land: $20,800 to Building. o $199,300 to Land; $0 to Building. O o $196,800 to Land: $1,500 to Building. $200,800 to Land: $0 to Building. O $195,500 to Land: $5,300 to Building