A company acquired machinery with cost of P2,200,000. with an estimated useful life of 10 years and estimated salvage value of P200,000 on January 1, 2018. The machinery has a recoverable amount (fair value) of P2,990,000 with an estimated residual value of P200,000 on January 1, 2019. On January 1, 2021, based on objective evidence, the asset was found to have been impaired. The machinery now has a recoverable amount (fair value) of P939,500 with an estimated value of P40,000.

QUESTION: Based on the above data, answer the following: Assuming the company is using cost model, answer the following: How much is the impaired loss in 2021?

How much is the depreciation in 2021?