You obtain the following information pertaining to Annabelle Co.'s property, plant, and equipment for 2022 in connection with your audit of the company's financial statements. Audited balances at December 31, 2021: Debit Credit P 3,750,000 Land Buildings Accumulated depreciation - Buildings Machinery and equipment Accumulated depreciation - Machinery and Equipment Delivery Equipment Accumulated Depreciation - Delivery Equipment 30,000,000 P 6,577,500 22,500,000 6,250,000 2,875,000 2,115,000 Depreciation Data: Buildings Machinery and Equipment Delivery Equipment Leasehold Improvements Depreciation Method 150% declining - balance Straight-line Sum-of-the-years'-digits Straight-line Useful Life 25 years 10 years 4 years Transaction during 2022 and other information are as follows: a) On January 2, 2022, Annabelle purchased a new truck for P500,000 cash and traded-in a 2-year- old truck with a cost of P450,000 and a book value of P135,000. The new truck has a cash price of P600,000; the market value of the old truck is not known. (b) On April 1, 2022, a machine purchased for P575,000 on April 1, 2010 was destroyed by fire. Annabelle recovered P387,500 from its insurance company. (c) On May 1, 2022, cost of P4,200,000 were incurred to improve leased office premises. The leasehold improvements have a useful life of 8 years. The related lease terminates on December 31, 2021. (d) On July 1, 2022, machinery and equipment were purchased at a total invoice cost of P7,000,000; additional cost of P125,000 for freight and P625,000 for installation were incurred. (e) Annabelle determined that the delivery equipment comprising the P2,875,000 balance at January 1, 2022, would have been depreciated at a total amount of P450,000 for the year ended December 31, 2022. The salvage values of the depreciable assets are immaterial. The policy of the Annabelle Co. is to compute depreciation to the nearest month. Per inquiry with the owner of the company, their accountant resigned in 2022, thus no entries relating to property, plant and equipment were made during the year.