The property, plant and equipment section of Radiohead Corporation’s statement of financial position at December 31, 2020 included the following items:
Land P2,500,000
Land improvements 560,000
Building 3,600,000
Machinery and equipment 6,600,000
During 2021, the following date were available to you upon the analysis of the accounts:
Cash paid on purchase of land P10,000,000
Mortgage assumed on the land bought, including interest at 16% 16,000,000
Realtor’s commission 1,200,000
Legal fees, realty taxes and documentation expenses 200,000
Amount paid to relocate persons squatting on the property 400,000
Cost of tearing down an old building on the land 300,000
Amount recovered from the salvage of the building demolished 600,000
Cost of fencing the property 440,000 Amount paid to a contractor for the building erected 8,000,000
Building permit fees 50,000
Excavation expenses 250,000
Architect’s fee 100,000
Interest that would have been earned had the money used during the period of construction been invested in the money market 600,000
Invoice cost of machinery acquired 8,000,000
Freight, unloading and delivery charges 240,000
Customs duties and other charges 560,000
Allowances, hotel accommodations, etc. paid to foreign technicians during installation and test run of machines 1,600,000
Royalty payments on machines purchased (based on units produced and sold) 480,000
Required: Determine the balances of the following:
a) Land