Generic Company purchased land for P2,000,000 as a plant site. There was a small office building on the land with a fair value of P700,000, which the entity will continue to use with some modification and renovation. The entity decided to construct a factory building and incurred the following costs: 1. What is the cost of land? a. 1,310,000 b. 1,300,000 c. 1,350,000 d. 1,410,000 2. What is the cost of the office building? a. 700,000 b. 900,000 c. 950,000 d. 850,000 3. What is the cost of factory building? a. 5,720,000 b. 5,800,000 c. 5,920,000 d. 5,600,000 At the beginning of the current year, Melancholy Company reported the following property, plant, and equipment: The following transactions occurred during the current year: - A tract of land was acquired for P1,250,000 and intended definitely for use as a future building site - A plant facility consisting of land and a building was acquired from another entity in exchange for 100,000 Melancholy Company shares. The plant faclity was carried at P1,000,000 for land and P3,000,000 for the building at the exchange date. The current appraised values for the land and building are P1,500,000 and P3,000,000. - Expenditures totaling P750,000 for the new parking lot, street, and sidewalk at the entity's various plant locations were made early in the year. These expenditures had an estimated useful life of fifteen years. - Equipment was purchased at the cost of P3,000,000. Freight and unloading charges of P50,000 and installation costs of P350,000 were incurred. - In the middle of the current year, equipment was sold for P175,000. The original cost of the equipment acquired two years ago was P500,000. The equipment was depreciated on a straight-line basis over an estimated useful life of five years and no residual value. 1. What is the cost of land at year-end? a. 6,250,000 b. 5,950,000 c. 5,750,000 d. 9,250,000 2. What is the total cost of building at year-end? a. 8,400,000 b. 9,000,000 c. 8,250,000 d. 8,500,000 3. What is the total cost of land improvements at year-end? a. 1,650,000 b. 900,000 c. 750,000 d. 800,000 4. What is the total cost of equipment at year-end? a. 4,600,000 b. 3,400,000 c. 4,900,000 d. 4,400,000