Answer:
$216,000
Explanation:
The computation of the cost is shown below:-
For computing the cost that would be allocated to the land first we need to compute the total cost and total cost of land in percentage
Total cost = Cost of land + Cost of building + Cost of office furniture
= $234,000 + $754,000 + $312,000
= $1,300,000
Total cost of Land in percentage = $234,000 ÷ $1,300,000
= 0.18
Cost of land = Total cost of Land in percentage × Purchase price
= 0.18 × $1,200,000
= $216,000
