1) Mirador had determined its December 31. 2021 inventory on a FIFO basis at P 200.000. Information pertaining to that inventory follows: Estimated selling price, P 204,000 Estimated cost of disposal, P 10,000 Normal profit margin, P 30.000 Current replacement cost. P 180.000 Mirador records losses that result from applying the lower of cost or net realizable value. QUESTION: On December 31, 2021, the loss that Mirador should recognize is O P 6,000 O P 20,000 O P 36.000 O P 14.000

2) Legarda reported P 10,000 of net income for 2021. The correct net income, however, was P 8.000. It was determined that ending inventory was overstated by P 3.000. The only other error was with beginning inventory which must have been understated by P 1,000 understated by P 5,000 overstated by P 1,000 overstated by P 5,000