12. In 2018 May Corp purchased land by paying $75,000 cash and issuing a $1,000,000, 3% note. Both principal and interest are payable at the end of 5 years. Present value factors for 5 years at 3% are as follows. PV single PV ordinary annuity PV annuity due .8638 2.7232 2.8594 What amount is recorded as the cost of the land? a. $938,800 b. $755,800 c. $789,850 d. $928,585