PROBLEM 4: You are the senior auditor in charge for the annual audit of Samal Corp. for the year ended December 31, 2020. You checked mostly the information in the financial records for this small/medium entity and was highly satisfied. You noticed however, that the property account consisted of land which was acquired on January 1, 2018 together with eight identical buildings equally built on it. The initial purchase price was P48,000,000, thirty percent of which is attributable to the land. The eight buildings were estimated to have a 50 years as economic lives of which two of them were used for general and administrative offices while the rest were leased out to independent parties under operating lease arrangements. The following costs were also incurred during acquisition: Non-refundable transfer taxes paid to government 3,000,000 Title insurance and legal fees attributable to the acquisition 1,000,000 220,000 100,000 Actual borrowing costs Marketing and advertisements Office parties to celebrate new rental business Reimbursements to previous owner of non-refundable real property taxes for six-month period ending June 30, 2018 80,000 40,000 During 2018, Samal Corp. incurred repairs and maintenance costs of P46,000. Additionally, it paid non-refundable real property taxes of P60,000 for the year ending June 30, 2019. On December 31, 2018, the fair value of each building was P4.9M measured reliably on a going concern basis without undue cost or effort Based on your audit of the property account: 1. What is the initial measurement amount of investment property? 2. What is the initial measurement amount of the land to be categorized as PPE? 3. What is the initial measurement amount of buildings to be categorized as PPE? 4. What is the depreciation expense on the building for the year 2018