ACCOUNTING 202Quiz No. 2Name of Student: _________________________________________ Score Obtained:_________Date: January ___,2017 Total Possible Score:60 ptsSolve the following problems with appropriate solution. 1.During 2016, Cavite Company made the following property, plant and equipment expenditures:Land and building acquired from Bacoor Company9,000,000Repairs made to the building300,000Special tax assessment50,000Remodeling of office space including new partitions and walls400,000In exchange for the land and building acquired from Bacoor, Cavite issued 60,000 shares of itsP100 par value common stock. On the date of purchase, the stock had a market value of P150per share and the land and building had fair value of P2,000,000 and P6,000,000 respectively.During the year, Cavite also received land from a shareholder to facilitate the construction of aplant in the city. Cavite paid P100,000 for the land transfer and charged this amount to legalexpenses. The land is fairly valued at P1,500,000.a.The cost of the land ____________________b.The cost of the building ____________________2.Silang Company acquired a welding machine with an invoice price of P3,000,000 subject toa cash discount of 5% which was not taken. Silang incurred freight and insurance duringshipment of P50,000 and testing and installation cost of P200,000. Silang also incurred cost ofP20,000 in removing the old welding machine prior to the installation of the new one. Weldingsupplies were acquired at a cost of P100,000. The VAT on the acquisition is P300,000.