Reference no: EM132568153

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