Which of the following statements are true?
ABC Company obtained a land with an old building, that will be accounted for under property, plant and equipment. The Company intends to demolish the old building, to build a new building and will not use the old building prior to its demolition. The following information relates to the land and building:
Purchase price of the land and building P3,500,000
Fair value:
Land 3,000,000
Old building 2,000,000
Historical cost
Land 2,000,000
Old building 6,000,000
Demolition costs 700,000
Construction cost of the new building 15,000,000
Which of the following statements are true?
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