Problem 1 The following items are included in the Property, Plant and Equipment section of the statement of financial position of Corry Co. as of December 31, 2021: Land Buildings Leasehold improvements Machinery and equipment P 6,900,000 26,700,000 19,800,000 26,250,000 The following transactions occurred during 2022: a. Land A was acquired for P25,500,000. In connection with the acquisition, Corry paid a P1,530,000 commission to a real estate agent. Costs of P660,000 were incurred to clear the land. b. Land B was acquired for P4,500,000. A building was constructed on it for P9,900,000 plus the following costs: Excavation fees P1,140,000 Architectural design fees 330,000 Building permit fee 75,000 Insurance of construction workers during construction 1,230,000 The building was completed and occupied on December 30, 2022. C. During December 2022, costs of P2,670,000 were incurred to improve leased office space. The related lease will terminate on December 31, 2024, and is not expected to be renewed. d. A group of machines was purchased under a royalty agreement that provides for payment of royalties based on the units produced by the machines. The invoice price of the machines was P2,610,000. Freight costs were P99,000, installation costs were P72,000 and royalty payments were P262,500. Based on the preceding information determine the balances of the following accounts as of December 31, 2022: 1. Land 2. Buildings 3. Leasehold improvements 4. Machinery and equipment