Problem 2 Dela Cruz Company purchased land and building, demolished the existing building, and immediately constructed a new building. All of this occurred in the first eight months of 2018. In evaluating the company's Building account at year-end, you find the following amounts make up the P954,800 balance: Jan. 5 Purchase price of land and building P175,00 15 Demolition cost of old building, net of P10,000 54,000 BBENJES Sept. 1 Cost of new building 630,000 Insurance on new building 12,DDD 5 Display fixture in new building 62.800 Dec. 31 Interest expense on new building 21,000 P954 80 Upon further analysis, you discoverthe following explanation forthese amounts: P175,000 - The land was appraised at P150,000 and the existing building, P50,000. A combined purchase price of P175,000 was negotiated because the seller was anxious to sell the property as soon as possible. P 54,000 - The company negotiated a price of P64,000 for demolition ofthe old building, with the contractor retaining all salvage materials. The latter were estimated to be worth P10,DOD. P630,000 - This represents the contract price for the new building, which was placed into service on September 1. No interest was paid directly or indirectly related to this building prior to September 1. P 12,000 - Insurance was taken out on the building and its contents at P12,000 for twelve- month period. P 62,800 - Display fixtures, which are separate from the building itself, were installed. P 21,000 - Aloan was taken out when the building was placed into service coverthe P630,000 contract price. Interest was calculated at P630,000 at the effective 10 % interest rate for four months, or P21,000. Questions: 1. The correct balance of Land at year-end is: 2. The correct balance of Building at year-end is