5. During 2005, Cavite Company made the following property, plant and equipment expenditures: Land and building acquired from Bacoor Company 9,000,000 Repairs made to the building 300,000 Special tax assessment 50,000 Remodeling of office space including new partitions and walls 400,000 In exchange for the land and building acquired from Bacoor, Cavite issued 60,000 shares of its P100 par value common stock. On the date of purchase, the stock had a market value of P150 per share and the land and building had fair value of P2,000,000 and P6,000,000 respectively. During the year, Cavite also received land from a shareholder to facilitate the construction of a plant in the city. Cavite paid P100,000 for the land transfer and charged this amount to legal expenses. The land is fairly valued at P1,500,000. The cost of the land and building acquired should respectively be2. Billie Company leases an entire shopping complex from Complex Company under a 20- year operating lease. Under the lease agreement, Billie would manage and take the risks of operating the shopping complex for 20 years. It pays a yearly rental of P40,000,000 to Complex Company. Billie uses 20% of the floor area for its own operations. The rest of the floor area is sub-leased to other tenants. Billie Company expects rental income from the sublease to be about P35,000,000 per year for 20 years. The borrowing costs of Billie Company is 8% per year. The cost of constructing the complex incurred by Complex Company is P480,000,000, transaction and other incidental costs amount to P20,000,000. If Billie Company elects to treat its interest in the shopping complex as an investment property, being its interest in the underlying asset, at what amount should the investment property be initially recognized by Billie Company?3. On July 1, 2019, Eevy Company purchases an investment property at a cost of P50,000,000 including transaction costs. On October 1, 2019, the fair value of the property increases to P52,000,000. At December 31, 2019, the fair value of the property is P51,500,000. The rental income received per quarter is P1,000,000. The property has a useful life of 50 years. a. If the company uses the cost model, what is the net effect on the profit or loss for the six months ended December 31, 2019 in relation to the investment property? b. If the company uses the fair value model, what is the net effect on the profit or loss for the six months ended December 31, 2019 in relation to the investment property?4. Imus Company acquired two items of machinery as follows: . On December 30, 2005, Imus Company purchased a machine in exchange for a noninterest bearing note requiring three payments of P1,000,000. The first payment was made on December 30, 2005, and the others are due annually on December 30. The prevailing rate of interest for this type of note at date of issuance was 12%. The present value of an ordinary annuity of 1 at 12% is 1.69 for two periods and 2.40 for three periods. The new machine was damaged during its installation and the repair cost amounted to P50,000. . On January 1, 2005, Imus Company acquired used machinery by issuing to the seller a three-year, noninterest-bearing note for P3,000,000. In recent borrowing, Imus has paid a 12% interest for this type of note. The present value of 1 at 12% for 3 years is 0.71. What is the total cost of the machinery?1. Akie Company purchases a landed property at a cost of P100,000,000. In the sale and purchase agreement, P20,000,000 of the purchase price is attributed to the land portion. The building consists of 10 floors of equal space. Two floors are used for administrative purposes and the balance are let out to tenants. Akie also incurs the following' costs in connection with the purchase of the property: Legal and agency fees, P3,000,000; Soft launching cost to market for tenants, P500,000; Feng Shui costs for re-arrangements of interiors, P300,000; and administrative expenses, P200,000. At what amount should the investment property be initially recognized?6. On January 2, 2019, Jillian Company made a test of impairment on one of its buildings carried as plant asset. The test on impairment revealed a recoverable value of P5,500,000 on that building. The carrying value of this building as of January 2, 2019 is P8,000,000 with a remaining useful life of 10 years. On January 1, 2021, Jillian Company decided to convert this building into an investment property that is to be carried at fair value. The cost of converting the building is insignificant but as a result of the change in the usage, the fair market value of the building was reliably valued at P7,000,000. What amount of revaluation surplus should Jillian Company disclose in the shareholders' equity as of December 31, 2021