XYZ Corp. commenced operations early in 2021. During the first nine months, XYZ acquired real estate for the acquisition of a building and other facilities. Operating equipment was purchased and...

How much is the correct cost of the building?

Extracted text: XYZ Corp. commenced operations early in 2021. During the first nine months, XYZ acquired real estate for the acquisition of a building and other facilities. Operating equipment was purchased and installed, and the company began operating activities on April 2021. The company's accountant, who was not sure how to record some of the transactions, opened a Property, Plant and Equipment (PPE) ledger account and recorded debits and (credits) to this account as follows: Cost of real estate purchased as building site- P1,700,000 Paid architect's fee for design of new building- P230,000 Paid for demolition of old building on the building site purchased- P280,000 Paid property tax on the real estate purchased as the building site- P17,000 Paid excavation costs for the new building- P150,000 Made the first payment to the contractor- P2,500,000 Paid for equipment to be installed in the new building- P1,480,000 Received from sale of salvaged materials from demolishing the old building- P(68,000) Made final payment to the building contractor- P3,500,000 Capitalizable interest on the construction fund- P220,000 Paid freight on equipment purchased- P19,000 Paid installation costs of equipment- P42,000 Paid for repair equipment damaged during installation- P27,000