Reference no: EM132912757

Question - The following items of land and building are acquired by WTP Inc. on July 1, 2014:

(A) WTP acquired a land and building at a single cost of P20,000,000. At the date of acquisition, the fair value of the land is P30,000,000 while that for the building is P10,000,000.

(B) WTP acquired a land by issuing 200,000 ordinary shares with par value of P10. The ordinary shares of WTP is quoted at P15/share in the local stock exchange. The cost of the land on the seller is P1,500,000. At the date of acquisition by WTP, the fair value of the land is P2,500,000.

(C) WTP acquired a building by issuing bonds payable with face value of P5,000,000. At the date of acquisition by WTP, the book value of the building is P4,000,000 while its fair value is P5,500,000. The bonds of WTP is trading in the local exchange at 90.

Required - What is the total cost of land to be capitalized by WTP on July 1, 2014?