The PAMPANGA COMPANY was incorporated on Jan. 2, 2020, but was unable to begin manufacturing operations until July 1, 2020 because new factory facilities were not completed until that date. 2020 The "Land & Building" account at Dec. 31, 2020 is as follows: Jan. 31 Land and building P1,960,000 Feb. 28 Cost of building removal 30,000 April 1 Insurance premium 36,000 May 1 Partial construction payment 700,000 1 Legal fees paid 40,000 June 1 Second construction payment 600,000 30 General expenses 240,000 July 31 Final construction payment 700,000 Dec. 31 Asset write-up 250,000 P4,556,000 31 Depreciation 31 Account balance 455,600 P4,100,400 Additional information: 1. To acquire land and building, the company paid P960,000 cash and 10,000 shares of its common stock, par value, P100. The stock is not listed yet. The land is listed in the market at P2,000,000 on Jan. 31. 2. Cost of removing the old building amounted to P30,000 with Pampanga Co. retaining all scrap materials. Proceeds from the sale amounted to P18,000.