Taxpayer acquires an office building and the underlying land for $2,950,000 and incurs $50,000 in expenses directly related to the acquisition. Assume that $600,000 is properly allocated to the value of the land. Taxpayer believes the property will have more value if sold as vacant land and demolishes the building at a cost of $100,000. What effect will the demolition have for tax purposes?

a. $0 loss; $3,100,000 basis in land b. $0 loss; $3,100,000 basis in land c. $2,400,000 loss; $700,000 basis in land d. $2,500,000 loss; $600,000 basis in land e. $2,350,000 loss; $750,000 basis in land