ABC Company is bankrupt and has undergone corporate liquidation. Presented below is its statement of financial position before the start of the liquidation: Cash 390,000 Accounts Payable 130,000 Machinery 650,000 Salaries Payable 260,000 Building 1,560,000 Income tax Payable 390,000 Loan Payable 520,000 Mortgage Payable 650,000 Contributed capital 1,040,000 Deficit (390,000)

• Liquidation expenses amounting to P780,000 were paid

• The loan payable is secured by the machinery with fair value of P390,000.

• The mortgage payable is secured by the building (fair value equal its book value).

• At the end of liquidation, the holder of loan payable received P442,000.

1. What is the amount received by the holder of accounts payable at the end of liquidation?

2. What is the amount of net free assets available at the end of liquidation?