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On July 1, 20x1, Town Company purchased for ?540,000 a warehouse building and the land on which it is located. The following data were available concerning the property:
Current appraised value Seller's original cost
Land 200,000 140,000
Warehouse building 300,000 280,000
Totals 500,000 420,000
Question 1: Town should record the land at?
Option 1: P216,000
Option 2: P180,000
Option 3: P140,000
Option 4: P200,000
Option 5: Answer not given
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