Problem 2 For the December 31, 2021 Audit of SU CO.'s PPE, the auditee provided you the information below. Cost of all relevant PPE are as follows: Land P1,500,000.00 Building P5,000,000.00 Machineries & Equipment P3,000,000.00 Per inquiry and vouching of supporting documents, we noted the following information: Land - Acquired for agricultural activity in March 2019. Per inspection, the asset is currently being leased out to third party under operating lease. Per latest appraisal report, the land is fairly valued at P2,000,000.00 Building - Per company policy, buildings are to be depreciated at diminishing rate of 20% per annum. Building A & B were acquired at total cost of P5,000,000.00 on January 3, 2021. Building A - The fair value of the asset at acquisition and residual value after the end of its useful life is estimated at P4,000,000.00 and P200,000.00, respectively. The asset is currently leased out as corporate offices to third parties under operating lease. Per latest appraisal report, fair value of the property as of 12/31/2021 is estimated at P3,000,000.00 Building B - Being engaged in hospitality industry, suites in the building are currently booked by clients on a daily basis. The fair value of the asset at acquisition and residual value after the end of its useful life is estimated at P3,000,000.00 and P100,000.00, respectively. Machineries and Equipment - Acquired on May 1, 2021 at cost P3,000,000.00. Per record, there are two machineries maintained by the company. Per physical inspection and vouching of source documents, it was noted that one third of the total purchase price is attributed to supplies. It was verified that these supplies were 30% unutilized as of the year-ended. The machineries are fairly valued at a million each at acquisition date It is also to be noted that the assets are to be depreciated in full in the year of purchased. The machines are expected to last up to 5 years. Determine the following: 1. Carrying amount of each item of PPE: Land, Building and Machineries & Equipment as of December 31, 2021. (3pts.) 2. Total Depreciation Expense for the period ended December 31, 2021. 3. Adjusted cost of each tem of PPE: Land, Building and Machineries & Equipment. 3pts.) 4. Accumulated Depreciation of Building and Machineries & Equipment as of December 31, 2021 (3pts.) 5. Total non-current assets to be reported in Statement of Financial Position as of December 31, 2021. (3pts). 6. How much is the total current assets underlovervalued by