Ayala Corporation incurred the following costs during the current year in relation to property, plant and equipment: Cash paid for purchase of land Mortgage assumed on the land purchased, including interest accrued Realtor commission Legal fees, realty taxes and documentation expenses Amount paid to relocate persons squatting on the property Cost of tearing down an old building on the land to make room for construction of new building Salvage value of the old building demolished Cost of fencing the property Amount paid to the contractor for the building constructed Building permit fee Excavation Architect fee Interest that would have been earned had the money used during the period of construction been invested Invoice cost of machine acquired Freight, unloading and delivery charges Custom duties and other charges Allowances and hotel accommodation, paid to foreign technicians during installation and test run of machine What amount should be capitalized as cost of land? a. 2,050,000 b. 1,925,000 c. 1,900,000 d. 1,975.000 What amount should be capitalized as cost of building? a. 2,705,000 b. 2,725,000 c. 2,780,000 d. 2,650,000 What amount should be capitalized as cost of machine? a. 1,300,000 b. 1,000,000 c. 1,100,000 d. 1,280,000 1,250,000 500,000 150.000 25,000 50,000 100,000 25,000 55.000 2,500,000 25,000 25,000 100,000 75,000 1,000,000 30.000 70,000 200,000