DEF Co. purchased a lot for ₱8,000,000. Immediately after the purchase, DEF Co. started the construction of a new building on the lot. Additional information follows: Legal cost of conveying title to land ₱ 40,000 Special assessment 20,000 Survey costs 60,000 Materials, labor, and overhead costs 22,000,000 Cash discounts on materials purchased not taken 120,000 Clerical and other costs related to construction 56,000 Excavation costs 400,000 Architectural fees and building permit 240,000 Supervision by management on construction 48,000 Insurance premiums paid for workers 520,000 Payment for claim for injuries not covered by insurance 180,000 Savings on construction 800,000 Cost of changes to plans and specifications due to inefficiencies 560,000 Paving of streets and sidewalks (not included in blueprint) 40,000 Income earned on a vacant space rented as parking lot during construction 36,000 1. How much are the capitalized costs of the land, land improvement and the building?
DEF Co. purchased a lot for ₱8,000,000. Immediately after the purchase, DEF Co. started the construction of a new building on the lot. Additional information follows:
Legal cost of conveying title to land ₱ 40,000
Special assessment 20,000
Survey costs 60,000
Materials, labor, and
Cash discounts on materials purchased not taken 120,000
Clerical and other costs related to construction 56,000
Excavation costs 400,000
Architectural fees and building permit 240,000
Supervision by management on construction 48,000
Insurance premiums paid for workers 520,000
Payment for claim for injuries not covered by insurance 180,000
Savings on construction 800,000
Cost of changes to plans and specifications due to inefficiencies 560,000
Paving of streets and sidewalks (not included in blueprint) 40,000
Income earned on a vacant space rented as parking lot during construction 36,000
1. How much are the capitalized costs of the land, land improvement and the building?
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