Reference no: EM133106330

Question - On January Jimmy Corp purchased a parcel of land as a factory site for P3.2M. An old building on the property was demolished right away and construction begun on a new warehouse that was completed April 30 of the same year. Costs incurred and cash inflows for the last 2 items on the entire project are listed below:

Cost of demolishing old building P280,000

Architect's fee 317,000

Legal fee title investigation 41,000

Construction costs 9,500,000

Interest on specific borrowings 140,000

Landfill for building site 193,000

Clearing of tress form building site 96,000

Insurance on building for 1yr beginning April 30 150,000

Temporary buildings used for construction activities 290,000

Land survey 40,000

Excavation of basement 132,000

Salvage material from demolition sold 18,000

Timber sold from cleared trees 33,000

Cost of paving parking lot for adjoining bldg. 100,000

Cost of shrubs ,trees and other landscaping 130,000

Special assessment for street project 21,000

Building permit fees 171,000

Savings on construction 25,000

Required - Determine the cost of the a. Land, b. New building and c. Land improvement.