MABUTINGEHEMPLO, Inc. obtained a land with an old building, that will be accounted for under property, plant and equipment. The Company intends to demolish the old building, since the old building is already deemed unusable. The following information relates to the land and building: P3,500,000 Purchase price of the land and building Fair value of the land Historical cost 3,000,000 Land 2,000,000 6,000,000 Old building Demolition costs 700,000 Which of the following statements are true? The cost of land is deemed to be P3,000,000. The demolition costs would be capitalized as part of land. The amount of expense to be recognized is P700,000. Which is equal to the demolition costs since the old building is already unusable. The cost of the new building is P17,100,000 million