Required: (1) Prepare the detailed analysis of the changes in each of the following statement of financial position accounts for 20x2: Land, Leasehold improvements, Buildings, Machinery and Equipment. Disregard the related accumulated depreciation accounts. (2) List the items in the facts situation which were not used to determine the answer to requirement 1 and indicate where or if this should be included included Tatty's financial statements

At December 31, 20X2, certain accounts included in the property, plant, and equipment section of the Tatty Company's statement of financial position had the following balances: Land P100,000 Leasehold improvements P500,000 Buildings 800,000 Machinery and equipment 700,000 During 20XI the following transactions occurred: 1. Land site number 621 was acquired for P1,000,000. Additionally, to acquire the land Tatty paid a P60,000 commission to a real estate agent. Costs of P15,000 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for P5,000. 2. A second tract of land (site number 622) with a building was acquired for P300,000. The closing statement indicated that the land was P200,000 and the building value was P100,000. Shortly after acquisition, the building was demolished at a cost of P30,000. A new building was constructed for P150,000 plus the following costs: Excavation fees P11,000 Architectural design fees 8,000 Building permit fee 1,000 The building was completed and occupied on September 29, 20X2. 3. A third tract of land (site number 623) was acquired for P600,000 and was put on the market for resale. 4. Extensive work was done to a building occupied by Tatty under a lease agreement that expires on December 31, 20X6. The total cost of the work was P125,000, which consisted of the following: Painting of the ceilings P 10,000 (estimated useful life is one year) Electrical work 35,000 (estimated useful life is ten years) Construction of extension to current working area 80,000 (estimated useful life is thirty years) P125,000 The lessor paid one-half of the costs incurred in connection with the extension to the current working area. 5. During December 20X2, costs of P65,000 were incurred to improve leased office space. The related lease will terminate on December 31 20X4, and is not expected to be renewed. 6. A group of new machines was purchased under a royalty agreement which provides for payment of royalties based on units of production for the machines. The invoice price of the machines was P75,000, freight costs were P2,000, unloading charges were P1,500, and royalty payments for 20X2 were P 13,000. Required: 1. Prepare a detailed analysis of the changes in each of the following statement of financial position accounts for 20X2: Land Leasehold improvements Buildings Machinery and equipment Disregard the related accumulated depreciation accounts. 2. List the items in the fact situation which were not used to determine the answer to Requirement 1, and indicate where, or if, these should be included in Tatty's financial statements