Diana Company is now a growing company. An acquisition of land and construction of a new building was undertaken. The following information relates to the scenario:   Land, at purchase price, P700,000   Legal fees related to land purchase, P45,000   Full construction cost of the new building, P5,780,000   Professional fees paid to the architect, P100,000   Sale of scrap materials from the old building previous situated in the land, P60,000   Demolition cost of old building for the construction of the new building, P90,000   How much is the cost of land? Cost of building?

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 3PB: During the current year, Alanna Co. had the following transactions pertaining to its new office...
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Diana Company is now a growing company. An acquisition of land and construction of a new building was undertaken. The following information relates to the scenario:

 

Land, at purchase price, P700,000

 

Legal fees related to land purchase, P45,000

 

Full construction cost of the new building, P5,780,000

 

Professional fees paid to the architect, P100,000

 

Sale of scrap materials from the old building previous situated in the land, P60,000

 

Demolition cost of old building for the construction of the new building, P90,000

 

How much is the cost of land? Cost of building? 

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