Reference no: EM132789622

Melancholy Company reported the following property, plant and equipment on January 1,2014:

Land 3,500,000

Land improvements 900,000

Building 6,000,000

Machinery 1,500,000

Transactions during the current year

1. A tract of land was acquired for PI,250,000 and intended definitely for use as future building site.
2. A plant facility consisting of land and building was acquired from another entity in exchange for 100,000 Melancholy Company's shares. On the acquisition date, the share had a closing market price of P45 on a stock exchange.
3. The plant facility was carried at P1,000,000 for land and P3,000,000 for the building at the exchange date.
4. Current appraised values for the land and building, respectively, are PI,200,000 and P2,400,000.
5. Expenditures totaling P750,000 were made in January for new parking lot, street and sidewalk at the entity's various plant locations. These expenditures had an estimated useful life of fifteen years.
6. Machinery was purchased at a cost of P3,000,000. Freight and unloading charge of P50,000, and installation cost of P350,000 were incurred.
7. A machine was sold for P175,000 on July 1,2014. Original cost of machine was P500,000 on January 1,2012 and it was depreciated on the straight line basis over an estimated useful life of five years and no residual value.

Requirements:

Problem 1. What is total cost of land at year-end?

Problem 2. What is the total cost of building at year-end?

Problem 3. What is the total cost of land improvements at year-end?

Problem 4. What is the total cost of machinery at year-end?