A machinery acquired in January 1, 2018 for P4,000,000 having a useful life of 10 years. On December 31, 2020, one major part of the machine broke down and required replacement. The company does not have a reliable estimate of the original cost of this particular part but was replaced on the same date for a new part with a cash price of P600,000. Effective market rate applicable is 10%. Determine the loss to be recorded on the replacement. At the beginning of 2016, A Company received a government grant to purchase a building. The amount of the grant was P3,600,000 and was recorded as reduction of the cost of the building. The building was purchased for P12,000,000 on the date the grant was received, with an estimated useful life of 18 years and an estimated residual value of P120,000. On January 1, 2020, the entire amount of the grant became repayable by reason of noncompliance with conditions attached to the grant. Determine the depreciation expense recorded in 2020 related to the building