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On November 1, 2019, Home Company purchased for P5000000 a tract of land as a factory site. The old building on the property was razed and salvaged materials resulting from demolishing were sold.
Additional cost incurred and salvage proceeds realized during November 2019 were as follows:
Demolition of old Building P300000
Legal fees for purchase contract and recording ownership P100000
Title guarantee insurance P 80,000
Proceeds from sale of salvaged materials P 40,000
Problem 1: In its November 30, 2019, balance sheet, Rome should report a balance in the land account of
Option 1: 5,140,000
Option 2: 5,520,000
Option 3: 5,580,000
Option 4: 5,440,000
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