A business bought a shop and had these costs: purchase price of the shop $\$680000$; legal fees incurred in the purchase of the shop $\$7200$; cost of initial inventory $\$12500$; cost of installing air conditioning $\$47300$. Which amount should be treated as capital expenditure?
- A$\$680000$
- B$\$687200$
- C$\$734500$
- D$\$747000$