On March 3, 2018, Matt purchased and placed in service a building costing $12,000,000. The building has 10 floors. The bottom floors are rented out to businesses. The top seven floors are residential apartments. The gross rents from the businesses are $60,000 and the gross rents from the apartments are $110,000. Determine Matts cost recovery for the building in 2018.

A) $315,024

B) $436,320

C) $345,480

D) $243,960

E) $307,680