40. Estimated warranty liability on December 31, 2020 * For items 39 and 40 Kindness Music Emporium carries a wide variety of music promotion techniques - warranties and premiums - to attract customers. Musical instrument and sound equipment are sold in a one-year warranty for replacement pf parts and labor. The estimated warranty cost, based on past experience is 2% of sales. Kindness total sales for 2020 were P43,200,000 from musical instrument. Replacement parts and labor for warranty work totaled P1,312,000 during 2020. The accrual method is used by Kindness to account for the warranty cost for financial reporting purposes. The balance of Estimated warranty liability on January 1, 2020 is P1,088,000. 41. Respect Company, a machinery dealer, sells a machinery for P22,200 under a 1-year Warranty contract that requires the company to replace all defective parts and to provide the necessary repair labor at no cost to the customers. With sales being made evenly throughout the year, Respect sells for cash 600 machines in 2020 (half of the warranty expense is incurred in 2020, half in 2021). On the basis of past experience, the 1-year warranty costs are estimated to be P510 parts and P660 labor. Assume that in 2020, these warranty costs are incurred exactly as estimated What amount of warranty liability would appear on the December 31, 2020, statement of financial position