structure. 19 Service equipment and fixtures made a permanent part of the 20 Safety fence around construction site 11,000 21 Removal of safety fence 35,000 22 Demolition cost of the old building 9,800 23 Proceeds from salvage of the demolition 33,000 4,000 Questions: would as one borwont leos Isnohip Based on the above data, determine the adjusted cost of the following: CASE NO. 1: Assume that on the date of acquisition, the land and building have fair values of P7,000,000 and P1,000,000 respectively. 1. Land a. P8,855,875 c. P8,936,875 b. P10,202,000 d. P10,265,500 2. The allocated cost of the old building that will be charged to loss. a. Nil c. P1,378,625 6 25/ b. P1,265,125 anun d. P1,315,125 Ad 3. New building bond a. P1,265,125 c. P1,027,800 b. P1,077,800 d. P1,056,800 4. Land Improvements ad fliw a. P13,500 c. P63,500 b. P50,000 d. P113,500 CASE NO. 2: Assume that on the date of acquisition, the old building is unusable and has minimal fair value.PROBLEM 19-3 Capitalizable Cost of Land, Building and Land Improvements- Old Building Will Be Demolished On March 1, 2018, Romie Milan Co. acquired land and building by paying 19,000,000 and assuming a mortgage of P1,000,000. The old building will be demolished for the construction of a new building. 000 Unpaid real property taxes up to the date of acquisition P 14,000 2 Cost of option of the acquired properties 10 sgaytrom # gift 20,000 Excavation cost 12,000 4 Escrow fees on the properties acquired 11,000 0005 Cost of relocating and reconstructing the property belonging to others in order to acquire the properties 23,000 0006 Payment to real estate agent 40,000 0907 Payments to tenants of the properties to induce them to vacate the premises. 3,000 008 Legal fees for contract to purchase the land 11,000 0009 Cost of removing trees from the land Inogs plea 70,000 00010 Building permit and licenses 60,000 06011 Architect fee 50,000 00012 Materials used in construction ( erdt no a 600,000 13 Driveway and walk to building (part of building plan) 30,000 0014 Payment for claim for injuries not covered by insurance 1 biagol 40,000 UO 15 Broker's fee on the properties acquired 10,000 00016 Rental fees generated on the portion of the building being 000,0 used as a parking site loiseou 23,500 00 017 Cost of paving parking lot adjoining building to subsvissay 50,000 018 Other overhead cost incurred as result of construction 220,000