1. Chongyun Company incurred the following costs during the current year:

Tax in arrears on land	P50,000
Payment for the land	1,000,000
Architect fees	230,000
Contract price for factory building	5,000,000
Safety fence around construction site	35,000
Safety inspection on building	30,000
Removal of safety fence after the completion of building	20,000
New fence surrounding the factory	80,000
Driveway, parking bay, and safety lighting	550,000
Trees, shrubs, and other landscaping	200,000

What amount should be recorded as cost of land improvements?

1. Chongyun Company incurred the following costs during the current year:

Tax in arrears on land	P50,000
Payment for the land	1,000,000
Architect fees	230,000
Contract price for factory building	5,000,000
Safety fence around construction site	35,000
Safety inspection on building	30,000
Removal of safety fence after the completion of building	20,000
New fence surrounding the factory	80,000
Driveway, parking bay, and safety lighting	550,000
Trees, shrubs, and other landscaping	200,000

What amount should be recorded as cost of land improvements?

P630,000

P750,000

P280,000

P830,000