to uninstall the equipment and restore the installation site at the end of the equipment's 8-year useful life, a process which Straw Co. estimates to cost about P4,000,000. The appropriate pre-tax discount rate is 10%. Requirement: Provide the journal entry. Acquisition through self-construction 7. Four AM Co. purchased a piece of land for P8,000,000 and started construction of a new building on the site. Information on the construction is as follows: Survey 60,000 Architectural and engineering works 1,800,000 Building permit 40,000 Temporary structures built during construction 10,000 Site clearing 100,000 Excavation and backfilling 400,000Construction materials and labor for structural works Insurance costs 12,000,000 86888 20,000 Abnormal loss on wasted materials and labor 260,000 Uninsured accidents 80,000 Safety inspection and supervision fees 30,000 Income from incidental operations during construction 50,000 Electrical lighting and wiring works 280,000 Plumbing and sanitary works 190,000 Elevator (included in bldg. design and installed during construction) 2,000,000 Finishing 15,000,000 Pavement and parking lot (included in building design) 220,000 Clerical and other costs related to construction 20,000 Costs of necessary design changes during construction 120,000 Rentals of construction equipment 290,000 Savings on self-construction 90,000 Requirement: Compute for the costs charged to the land and the building, respectively