Answer:
Option (B) is correct.
Explanation:
Given that,
Purchase price of the land = $620,000
Sale of salvaged parts already on land = $20,000
Demolition of the old building = $20,000
Ground-breaking ceremony (food and supplies) = $2,800
Land preparation and leveling = $7,000
Cost of land :
= Purchase price - Salvage + Demolition cost + Land preparation
= $620,000 - $20,000 + $20,000 + $7,000
= $627,000