Reference no: EM132765850

On February 14, 201A, Bamboo Company acquired the plant assets of Pine Corporation in exchange for 25,000 ordinary shares (P100 par value), which had a fair value of P180 per share on the date of the purchase of the property.

The property had the following appraised value:

Land                                        P1,600,000
Building                                       4,800,000
Machinery and Equipment               3,200,000

Below is the summary of Bamboo's cash outflows between the acquisition date and December 29, when it first occupied the building.

Repairs to building               P420,000
Construction of bases for machinery to be installed later 540,000
Driveways and parking lots                                         490,000
Remodeling of office space in building, including new partitions and walls     645,000
Special assessment by the city government on land                                80,000

On December 27, Bamboo paid cash for machinery, P560,000 (subject to 2% cash discount) and freight on machinery of P25,000.

Problem a: Compute the total cost of the following:

1. Land
2. Buildings _
3. Machinery and Equipment