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During 2021, CATHY Company acquired a plot of land for P450,000. In addition, to acquire...

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Accounting

During 2021, CATHY Company acquired a plot of land for P450,000. In addition, to acquire the land, CATHY Company paid a P30,000 commission to a real estate agent. P75,000 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for P15,000. The initial measurement of the land is 4. DALE Company acquired a piece of land on October 30, 2021 on which a new building will be immediately constructed. The cost related to the acquisition included the following: Cash payment P 2,800,000 Broker's fee 120,000 Option price paid for the land acquired 80,000 Option price for land that was not acquired 30,000 Delinquent property taxes for 2020 that was assumed and paid by DALE Company 120,000 Property taxes for 2020 to be paid on or before December 31, 2020 180,000 Cost of relocating squatters 45,000 The initial measurement of the land is 5. EMMA Company received from the city government of Paranaque, a piece of land as an inducement to locate a plant in Paranaque. The fair value of the land was P450,000. EMMA Company paid P20,000 of legal costs for land transfer. Grading and levelling cost totaled P30,000. What is the amount initially capitalized under property, plant and equipment?

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