Aglubo Co. commenced operations on July 1, 2021. During the following year, the company acquired a tract of land, demolished the building on the land and built a new factory. Equipment was acquired for the factory and, in March 2022, the plant was ready to commence operation. During this period, the following inflows and outflows occurred:

Calculate the cost of the following

Land

Land Improvement

Building

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While searching for a suitable block of land, Aglubo Company placed an option to buy with three real estate agents at a cost of P1,000 each. One of these blocks of land was later acquired. Payment of option fees Receipt of loan from bank Payment to settlement agent for title search, stamp duties, and settlement fees Payment of arrears in rates on building and land Payment for land Payment for demolition of current building on land Proceeds from sale of material from old building P3,000 4,000,000 100,000 50,000 1,000,000 120,000 55,000 Payment to architect Payment to council for approval of building construction Payment for safety fence around construction site Payment to construction contractor for factory building Payment for external driveways, parking bays and safety lighting Payment for safety inspection on building Payment for equipment Payment of freight and insurance costs on delivery of equipment Payment of installation costs on equipment Payment for safety equipment surrounding equipment Payment for removal of safety fence Payment for new fence surrounding the factory Payment for advertisements in the local paper about the forthcoming factory and its benefits to the local community Payment for opening ceremony Payments to adjust equipment to more efficient operating levels subsequent to initial operation 230,000 120,000 34,000 2,400,000 540,000 30,000 640,000 56,000 120,000 110,000 20,000 80,000 5,000 60,000 33,000 While searching for a suitable block of land, Aglubo Company placed an option to buy with three real estate agents at a cost of P1,000 each. One of these blocks of land was later acquired. Payment of option fees Receipt of loan from bank Payment to settlement agent for title search, stamp duties, and settlement fees Payment of arrears in rates on building and land Payment for land Payment for demolition of current building on land Proceeds from sale of material from old building P3,000 4,000,000 100,000 50,000 1,000,000 120,000 55,000 Payment to architect Payment to council for approval of building construction Payment for safety fence around construction site Payment to construction contractor for factory building Payment for external driveways, parking bays and safety lighting Payment for safety inspection on building Payment for equipment Payment of freight and insurance costs on delivery of equipment Payment of installation costs on equipment Payment for safety equipment surrounding equipment Payment for removal of safety fence Payment for new fence surrounding the factory Payment for advertisements in the local paper about the forthcoming factory and its benefits to the local community Payment for opening ceremony Payments to adjust equipment to more efficient operating levels subsequent to initial operation 230,000 120,000 34,000 2,400,000 540,000 30,000 640,000 56,000 120,000 110,000 20,000 80,000 5,000 60,000 33,000

Answer rating: 100% (QA)

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