The cost of land and building in this scenario according to IAS 16, Property, Plant and Equipment, would be calculated as follows:

The purchase price of the property was 8.6 million, and ABC Corp received 100,000 in rebates and 100,000 in discounts. These amounts should be deducted from the original purchase price to arrive at the net cost of the property. After deducting the rebates and discounts from the original purchase price, the cost of the property would be:

8.6 million (original purchase price) - 100,000 (rebates) - 100,000 (discounts) = 8.4 million

However, the cost to prepare the property, which is considered a direct cost of bringing the property to its intended use, should be added to this figure. ABC Corp spent 1.4 million on these preparations. Therefore, the total cost of the land and building would be:

8.4 million (net property cost) + 1.4 million (preparation costs) = 9.8 million

So, the correct answer is:

9.8 million.