Purchase cost relating to Loan

[Winston A.]

Hello,

I bought a building for $200,000, and was wondering if add the purchase cost to the building before OR after the allocated building % is applied.

VERSION #1
Purchase Price: $200,000
Purchase Costs: 5,000
Total: $205,000
Building % 75%
Building Basis: $153,750

VERION #2
Purchase Price: $200,000
Building % 75%
Total: $150,000
Purchase Costs: 5,000
Building Basis: $155,000

Thanks in advance for your help,

Winston