Real Estate was bought by ABC Company for $400,000, on which there was an old office building. It paid $30,000 in cash as a down payment and signed an 10% mortgage for the remainder. It immediately had the old building razed at a net cost of $25,000. Attomeys were paid $8,000 in connection with the land purchase and an additional $4,000 in connection with permits and zoning variances necessary for ABC's new office building. $25,000 was paid for excavation for the basement of the new building, $1,600,000 was paid for construction of the new building, and $55,000 was paid for a parking lot and necessary walkways and driveways. I 433,000. O 425,000 403,000 400,000