year. • Purchased building to be held as investment property for P4,000,000. Direct costs incurred amounted to P80,000. Costs of day-to-day servicing for the asset totaled P20,000. • Constructed building to be used as investment property. Total costs incurred include the following: • Materials, labor, and overhead Start-up costs Operating losses • Abnormal amounts of wasted materials during P8,000,000 400,000 200,000 construction 80,000 • Land acquired with currently undetermined future use by issuing note payable with face amount of P4,000,000 and a present value of P3,200,000. • Building acquired through finance lease to be rented out under various operating leases. The fair value of the building is P2,120,000 and the present value of minimum lease payments is P2,000,000. • Land to be used as investment property was acquired through exchange. Fair value of asset given up in exchange for the land is P12,000,000. Fair value of the land received is P14,400,000. Additional cash paid for the land received is P2,000,000. The exchange has commercial substance. How much is the total cost of investment property on initial recognition? Show your computation.