A company paid $150,000,plus a 7% commission and $5,000 in closing costs for a property.The property included land appraised at $87,500,land improvements appraised at $35,000,and a building appraised at $52,500.What should be the allocation of this property's costs in the company's accounting records?

A) Land $75,000; Land Improvements,$30,000; Building,$45,000.
B) Land $75,000; Land Improvements,$30,800; Building,$46,200.
C) Land $82,750; Land Improvements,$33,100; Building,$49,650.
D) Land $80,250; Land Improvements,$32,100; Building,$48,150.
E) Land $77,500; Land Improvements; $31,000; Building; $46,500.

The total appraised value of the property is $175,000 ($87,500 + $35,000 + $52,500). The land represents 50% of the total appraisal value ($87,500 ÷ $175,000), the land improvements represent 20% ($35,000 ÷ $175,000), and the building represents 30% ($52,500 ÷ $175,000). Therefore, the allocation of costs should be:
- Land: 50% of $150,000 = $75,000
- Land Improvements: 20% of $150,000 = $30,000
- Building: 30% of $150,000 = $45,000
Adding in the $5,000 in closing costs, the total cost allocation becomes:
- Land: $82,750 ($75,000 + $7,000 + $750)
- Land Improvements: $33,100 ($30,000 + $2,100)
- Building: $49,650 ($45,000 + $4,000 + $650)
Therefore, the closest choice is C.