Consider the following transactions entered into by Company A in the current year: 1. 1. On January 1, the company purchased real property for P7,980,000, which included a charge of P320,000 representing property tax for the current year that was prepaid by the vendor. 30% of the purchase price is deemed applicable to land and the balance to buildings. A mortgage of P4,500,000 was assumed by the company on the purchase while the remaining balance was paid in cash. 2. Repairs and maintenance costs were required to recondition the buildings for a total amount of P478,000. 3. Demolished garages in the rear of the building, P50,000 being recovered on the lumber salvage. The company proceeded to construct a warehouse. The cost of such warehouse was P723,000 which was P96,000 less than the average bids made on the construction by independent contractors. Upon completion of construction, city inspectors ordered extensive modifications to the building as a result of failure on the part of the company to comply with building safety code. Such modifications, which could have been avoided, cost P92,000. 4. The company exchanged its own shares with a fair value of P698,000 (par P500,000) for a patent and a new equipment. The equipment had a fair value of P440,000. 5. The new machinery for the new building arrived. Payment was made by issuing bonds with a face value of P500,000 and by paying cash of P250,000. The fair value of the machine is set at P685,000. 6. The company contracted for parking lots and waiting sheds at a cost of P550,000 and P250,000, respectively. The work was completed in the current year. 7. Further redecorating and repairs to the buildings were completed at a cost of P82,000. Determine total capitalizable costs of: (1) LAND [ Select ] (2) BUILDINGS [Select ] (3) MACHINERY AND EQUIPMENT [Select] (4) LAND IMPROVEMENTS (Select] Consider the following transactions entered into by Company A in the current year: 1. 1. On January 1, the company purchased real property for P7,980,000, which included a charge of P320,000 representing property tax for the current year that was prepaid by the vendor. 30% of the purchase price is deemed applicable to land and the balance to buildings. A mortgage of P4,500,000 was assumed by the company on the purchase while the remaining balance was paid in cash. 2. Repairs and maintenance costs were required to recondition the buildings for a total amount of P478,000. 3. Demolished garages in the rear of the building, P50,000 being recovered on the lumber salvage. The company proceeded to construct a warehouse. The cost of such warehouse was P723,000 which was P96,000 less than the average bids made on the construction by independent contractors. Upon completion of construction, city inspectors ordered extensive modifications to the building as a result of failure on the part of the company to comply with building safety code. Such modifications, which could have been avoided, cost P92,000. 4. The company exchanged its own shares with a fair value of P698,000 (par P500,000) for a patent and a new equipment. The equipment had a fair value of P440,000. 5. The new machinery for the new building arrived. Payment was made by issuing bonds with a face value of P500,000 and by paying cash of P250,000. The fair value of the machine is set at P685,000. 6. The company contracted for parking lots and waiting sheds at a cost of P550,000 and P250,000, respectively. The work was completed in the current year. 7. Further redecorating and repairs to the buildings were completed at a cost of P82,000. Determine total capitalizable costs of: (1) LAND [ Select ] (2) BUILDINGS [Select ] (3) MACHINERY AND EQUIPMENT [Select] (4) LAND IMPROVEMENTS (Select]
