Monterey Developers purchases 10 acres of land for $15,000 on January 14, 2019. It also pays $2,000 in legal and other fees related to the purchase. Monterey spends $3,000 for legal fees, permit licenses, and city franchise fees to subdivide the land into 10 one-acre plots. Sewer and utility line easements cost an additional $5,000. Interest paid on the loan that financed the purchase is $1,200 for 2019. Monterey also pays $800 in property taxes in 2019. What is Monterey’s adjusted basis in the land at the end of 2019?

a. $17,000
b. $25,000
c. $25,800
d. $26,200
e. $27,000