Reference no: EM132783292

Question - During 2020, Dinara Company made the following property, plant and equipment expenditures:

Land and building acquired from Samantha Company 7,000,000

Repairs and reconditioning cost made to the building 250,000

Reconstruction of sidewalk and fences 100,000

Special tax assessment 50,000

Re-modeling of office space including new partitions and walls 400,000

In exchange for the land and building acquired from Samantha, Dinara issued 50,000 ordinary shares of its P100 par value ordinary shares. On the date of purchase, the shares had a market value of P140 per share and the land and building had a fair value of P2,000,000 and P6,000,000 respectively. During the year, Dinara also received land from a shareholder to facilitate to relocation of its main offices in the city. Dinara paid P50,000 for the donated land transfer. The donated land is fairly valued at P1,800,000. What is the total cost of the land acquisition?