ABC Co. received a P1,800,000 subsidy from the government to purchase manufacturing equipment on January 2, 2018. The equipment has a cost of P3,000,000 a useful life of six years and no salvage value. Nadine depreciates the equipment on a straight line basis. If ABC Co. chooses to account for the grant as an adjustment to the asset, the carrying amount of the asset on December 31, 2018 statement of financial position is