Reference no: EM132609840
Question - Paesh Company was organized in June 2020. The following transactions pertain to land and building:
Jun. 1 Organization fees paid to the state P 150,000
Jun. 30 Land and old building with fair value P1,000,000 3,000,000
Jun. 30 Corporate organization costs 300,000
July. 1 Title clearance fees 50,000
Aug. 31 Cost of razing old building to make room for new building 100,000
Sept. 1 Executive salaries with no participation in construction 600,000
Dec. 31 Land real state tax for 6-months ended December 31, 2020 90,000
Dec. 31 Cost of new building completed and occupied on this date 8,000,000
Required -
1. What is the cost of the land?
2. What is the cost of the new building?