Phil Company acquired land and an existing building in exchange for 60,000 ordinary shares, the real property tax bill showed an assessed value of P3,000,000 for the land and P 2,000,000 for the building. The shares have a par value of P100 and a fair value of P150 per share. The company also incurred the following costs: Payments to tenants to vacate the building, P100,000 Unpaid property taxes on land and building assumed by Phil Company, P375,000 Assessment by the city for the sewerage project, P10,000 Driveways and parking bays, P550,000 Cost of grading and leveling, P50,000 Cost of the new wing attached to the building, P 750,000 Cost of the split-type airconditioning units, P 300,000 Remodeling cost prior to occupancy, P 200,000 The building is composed of 28 office units of equal sizes plus a lobby equivalent to the size of 2 office units. The 24 units out of the 28 units are for rent (operating lease) and the remaining units are for the building owner's use. What is the total cost of the building? How much should be capitalized under investment property? How much should be capitalized as PPE? < Previous Continue >