Crescent paid a real state broker's commission of P108,000, legal fees of P18,000 and title guarantee insurance of P54,000. The closing statement indicated that the land value was P1,500,000 and the building value was P300,000. Shortly after acquisition, the building was razed at a cost of P225,000. Crescent entered into a P9,000,000 fixed-price contract with Cabanatuan Builders, Inc. on March 1, 2015 for the construction of an office building on the land site 101. The building was completed and occupied on September 30, 2016. Additional construction costs were incurred as follows: Plans, specifications and blueprints P 36,000 Architect's fees for design and supervision 285,000 The building is estimated to have a forty-year life from date of completion and will be depreciated using the 150%-declining-balance method. To finance the construction cost, Crescent borrowed P9,000,000 on March 1, 2015. The loan is payable in ten annual installments of P900,000 plus interest at the rate of 14%. Crescent used part of the loan proceeds for working capital requirements. Crescent's average amounts of accumulated building construction expenditures were as follows: For the period March 1 to December 31, 2015 P2,700,000 For the period January 1 to September 31, 2016 6,900,000 Crescent is using the allowed alternative treatment for borrowing cost. Based on the above, determine the following: Cost of land site number 101

Select one:

a. P2,205,000

b. P2,151,000

c. P1,800,000

d. P1,905,000