Reference no: EM132783943
Question - During 2016, Snow Company acquired/received the following assets:
Land D acquired for P220,000. In addition, to acquire the land, Snow Company paid a P15,000 commission to a real estate agent. P25,000 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for P5,000
Land J was acquired on September 30, 2016 on which a new building will be immediately constructed. The cost related to the acquisition included the following:
Cash payment P1,400,000
Broker's fee 80,000
Option price paid for the land acquired 120,000
Option price for land that was not acquired 40,000
Delinquent property taxes for 2015 that was assumed and paid by Snow Company 120,000
Property taxes for 2016 to be paid on or before Dec. 31, 2016 160,000
Cost of relocating squatters 20,000
Received from the city government Land B as an inducement to locate a plant in the city. The fair value of the land was P600,000. No payment was required by Snow Company paid P40,000 of legal costs for land transfer. Grading and leveling cost totaled P30,000.
Required - Find the amount initially capitalized under property, plant and equipment?