Hawks Corporation’s Property, Plant and Equipment section of its statement of financial position as of December 31, 2019 included the following: Land P 400,000 Buildings 3,200,000 The following...

Hawks Corporation’s Property, Plant and Equipment section of its statement of financial position as of December 31, 2019 included the following:

The following transactions occurred during 2020:

• Land site number 102 was acquired for P4,000,000. Additionally, to acquire the land the entity paid a P240,000 commission to a real estate agent.  Costs of P60,000 were incurred to clear the land.  During the course of clearing the land, timber and gravel were recovered and sold for P20,000.

• A second tract of land (site number 103) with a building was acquired for P1,200,000. Based on reliable information at the time of acquisition, fair value of land is P800,000 and the building P400,000.  Shortly after acquisition, the building was demolished at a cost of P120,000.  A new building was constructed for P1,600,000 plus the following costs:

The building was completed and occupied on September 1, 2020.

Determine the balance of the Land as of December 31, 2020.