Answer:
C. $400,000
Explanation:
The amount that should be recorded in respect of land shall be determined through the following mentioned method:
Amount of land=Purchased amount of land, building and equipment* [Fair value of land/Estimated fair values of the land, buildings, and equipment}
Amount of land=$1,200,000*[$500,000/$500,000+$800,000+$200,000]
=$1,200,000*[$500,000/$1,500,000]
=$400,000
So based on the above calculations, the answer is C. $400,000
