Problem 2: EGGPLANT COMPANY incurred the following expenditures in 2017:

Purchase of landP3,900,000

Land survey52,000

Fees for search of title for land6,000

Building permit fee35,000

Temporary quarters for construction crews107,500

Payments to tenants of old building for vacating premises46,000

Cost to demolish old building470,000

Excavation of basement100,000

Special assessment for street project20,000

Dividends50,000

Damages awarded for injuries sustained in construction (no insurance carried) 84,000

Cost of construction9,000,000

Cost of paving parking lot adjoining building 400,000

Cost of shrubs, trees, and other landscaping 330,000

A portion of the building site had been temporarily used by EGGPLANT to operate a car park while the building was being constructed. A total of P162,500 was earned by EGGPLANT from this incidental activity.

1.What is the cost of the land?

2.What is the total cost of the land improvement?

3.What is the cost of the building?