Bluesy Company acquired land and paid for it in full by issuing $700,000 of its 10 percent bonds payable and 40,000 shares of its common stock, par $10. The stock was selling at $21 per share and the bonds were trading at 102. What amount should Bluesy record as the cost of the land?
a. $1,100,000
b. $1,540,000
c. $1,554,000
d. $1,604,000