AUDIT OF PPE (1) The following account balances were included in the statement of financial position of the Brass Company on December 31, 2019 : Land P100,000 Land improvements 20,000 Buildings 300,000 Machinery and equipment 500,000 During 2020 the following transactions occurred : 1. Land was acquired for P70,000 for a future building site . Commissions of P4,000 were paid to a real estate agent . 2. A factory and land were acquired from the Kentucky Development Company by issuing 20,000 shares of P3 par ordinary shares . At that time , the shares were selling for P10 per share on the Philippine Stock Exchange . The independently appraised values of the land and the factory were P60,000 and P180,000, respectively. 3. Machinery and equipment was acquired at a cost of P120,000. In addition, VAT, freight costs , and installation costs were P7,000 , P10,000 and P16,000 , respectively . During installation , the machinery was damaged and P2,000 was spent in repairs 4. A new parking lot was installed at a cost of P30,000. 5. A machine that had cost P20,000 on January 1, 2016 and had a book value on December 31, 2020 of P4,000 was sold on that date for P6,000 6. Half of the land purchased in item I was prepared as a building site . Costs of P26,000 were incurred to clear the land , and timber recovered was sold for P3,000 . A new building was built for P60,000 plus architect's fees and imputed interest on equity funds used during construction of P18,000 and P15,000 , respectively . No debt is outstanding 7. Costs of P20,000 were incurred to improve some leased office space . The lease will terminate in 2022 and is not expected to be renewed 8. A group of new machines was purchased under a royalty agreement that provides for payment of annual royalties based on units produced . The invoice price of the machine was P30,000 freight costs were P2,000 , and royalty payments for 2020 were P12,000 REQUIRED Prepare journal entries to record all the preceding events . Unless otherwise indicated , assume the company makes all payments in cash