The following expenditures were incurred by the Keng, Inc. in 2019: Cost of land P4,500,000 Expenses of land survey 30,000 Expenses for search of land title 6,000 Building permit fee 10,000 Temporary building to house materials and Construction workers 50,000 Demolition of old building 40,000 Payments to tenants to vacate the premises of old Building 60,000 Payments to some construction worker for injuries Sustained (no insurance was carried) 85,000 Interest on temporary loan for construction 90,000 Cost of paving parking area adjoining building 45,000 Excavation expenses for foundation of building 150,000 Cost of Construction 9,800,000 Using the interpretations of the PIC, what are the costs of the land and building, respectively? *
The following expenditures were incurred by the Keng, Inc. in 2019:
Cost of land P4,500,000
Expenses of land survey 30,000
Expenses for search of land title 6,000
Building permit fee 10,000
Temporary building to house materials and Construction workers 50,000
Demolition of old building 40,000
Payments to tenants to vacate the premises of old Building 60,000
Payments to some construction worker for injuries Sustained (no insurance was carried) 85,000
Interest on temporary loan for construction 90,000
Cost of paving parking area adjoining building 45,000
Excavation expenses for foundation of building 150,000
Cost of Construction 9,800,000
Using the interpretations of the PIC, what are the costs of the land and building, respectively? *
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