1. Halaya, Inc. purchased a machine under a deferred payment contract on December 31, 2021. Under the terms of the contract, Halaya is required to make eight annual payments of P140,000 each beginning December 31, 2022. The appropriate interest rate is 8 percent. The purchase price of the machine is? (PV of ordinary annuity at 8% for 8 periods is 5.74664)

2. Batua Company bought a new display case for P42,000 and was given a trade-in of P2,000 on an old display case, so the company paid P40,000 cash with the trade-in. The old case had an original cost of P37,000 and accumulated depreciation of P34,000. If the transaction has commercial substance, the company should record the new display case at?