11. 1. The following transactions relate to Ajman Company:
    1. The national government grants the company a large tract of land to be used as a plant site. The lands fair value is determined to be P1,620,000.
    2. Ajman Company issued 280,000 ordinary shares (par value, P50) in exchange for land and building. The fair value of the property is determined to be P16,200,000 with the following allocation:

Land P3,600,000 Building 12,600,000

Ajman Companys ordinary shares are not listed on the stock exchange but it records show that a block of 2,000 shares ws sold by a shareholder a year ago at P70 per share and another block of 4,000 shares was sold by another shareholder 8 months ago at P63 per share.

3. Ajman Company constructed machinery during the year. No entry was made to remove from the accounts for materials. Labor and overhead the following costs that are properly chargeable to the machinery account.

Raw materials used	250,000
Factory supplies used	18,000
Direct labor costs incurred	320,000
Incremental overhead causedby construction of machinery (exc;uding factory supplies used)	54,000
Fixed overhead rate applied to regular manufacturing operations	60% of direct labor cost

The cost of similar machinery would be P880,000 if it had been purchased from a dealer.

The entries required to record this transaction should include debits to

Land		Building		Machinery
A) P5,540,000		P13,720,000		P834,000
B) 5,975,556		15,244,444		816,000
C) 5,757,778		14,482,222		780,000
D) 5,220,000		12,600,000		834,000