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Question - ABC Co. purchased land as a factory site for P1,000,000. ABC paid P40,000 to tear down two buildings on the land. Salvage was sold for P5,400. Legal fees of P3,480 were paid for title investigation and making the purchase. Architect's fees were P41,200. Title insurance cost P2,400, and liability insurance during construction cost P2,600. Excavation cost P10,440. The contractor was paid P2,400,000. An assessment made by the city for pavement was P6,400. Interest costs during construction were P170,000. Find the cost of the land that should be recorded by ABC Co?
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