Reference no: EM133020071

Question - On February 1, 20X1, ABC Corporation purchased a parcel of land as a factory site (unusable) for P320,000. An old building on the property was demolished and construction begun on a new warehouse that was completed April 15, 20X2. Costs incurred on the construction project are listed below. Demolition of old building - P 21,000; Architect's fees - 31,700; Legal fees--title investigation - 4,100; Construction costs - 950,000; Imputed interest based on stock financing - 14,000; Landfill for building site - 19,300; Clearing of trees from building site - 9,600; Temporary buildings used for construction activities - 29,000; Land survey - 4,000; Excavation for basement - 13,200; Salvage materials from demolition sold for - P1,800; Timber sold for P3,300. Determine the cost of the land.