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For P900,000, Holiday Company bought land for a factory site. Holiday Co. spent P80,000 to demolish two structures on the property land. For P5,400, salvage was sold. For the title investigation and making the purchase, legal fees of P3,480 were paid. The architect's fee was P31,200. The cost of title insurance was P2,400, while the cost of liability insurance during construction was P2,600. The cost of excavation was P10,440. Then, P2,500,000 was paid to the contractor. The assessment made by the city for pavement amounted to P6,400. During construction, interest costs amounted to P175,000.
Problem 1: How much is the cost of the land that Holiday Company should record?
Problem 2: How much is the cost of the building that Holiday Company should record?
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