Response to the following problem:
Byrd Corporation acquired real estate that contained land, building and equipment. The property cost Byrd $850,000. Byrd paid $175,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $95,000; Building, $640,000 and Equipment, $265,000. What value will be recorded for the building?
544,000
432,000
640,000
112,000
PLEASE SHOW CALCULATIONS ON HOW YOU ARRIVED AT YOUR ANSWER.