PROBLEMS Problem 26-1 (AICPA Adapted) At the beginning of current year, Basilan Company purchased for P4,500,000 a tract of land as a factory site. An existing building on the property was razed and construction began on a new factory building which was completed at year-end. Cost of razing old building 300,000 Title insurance and legal fees to purchase land 200,000 Architect fee 950,000 New building construction cost 8,000,000 Paving of street and sidwalk 100,000 1. What amount should be reported as cost of factory building? a. 9,250,000 b. 9,450,000 c. 9,350,000 d. 9,150,000 2. What amount should be reported as cost of the land? a. 4,700,000 b. 5,000,000 c. 4,500,000 d. 4,800,000 c