Simpson Co. acquired an office building on 12 acres of land for a lump-sum price of $2,400,000. The building was completely furnished. According to independent appraisals, the fair values were $1,300,000 for the building, $780,000 for the land and $520,000 for the furniture and fixtures. The amount allocated to the cost of land is: 1) $720,000. 2) $800,000. 3) $480,000. 4) $780,000