Paesh Company was organized in June 2020. The following transactions pertain to land and building:

Jun. 1 Organization fees paid to the state P 150,000

30 Land and old building with fair value P1,000,000 3,000,000

30 Corporate organization costs 300,000

July. 1 Title clearance fees 50,000

Aug. 31 Cost of razing old building to make room for new building 100,000

Sept. 1 Executive salaries with no participation in construction 600,000

Dec. 31 Land real state tax for 6-months ended December 31, 2020 90,000

31 Cost of new building completed and occupied on this date 8,000,000

Required:

1. What is the cost of the land?

2. What is the cost of the new building?