Reiley Co. purchased land as a factory site for P1,000,000. Reiley paid P40,000 to tear down two buildings on the land. Salvage was sold for P5,400. Legal fees of P3,480 were paid for title...

Reiley Co. purchased land as a factory site for P1,000,000. Reiley paid
P40,000 to tear down two buildings on the land. Salvage was sold for P5,400.
Legal fees of P3,480 were paid for title investigation and making the purchase.
Architect's fees were P41,200. Title insurance cost P2,400, and liability
insurance during construction cost P2,600. Excavation cost P10,440. The
contractor was paid P2,400,000. An assessment made by the city for pavement was
P6,400. Interest costs during construction were P170,000. The cost of the land
that should be recorded by Reiley Co. is