Arlene Company accounted for noncurrent assets using the cost model. On October 30, 2017, the entity classified a noncurrent asset as held for sale. At that date, the carrying amount was P1,500,000, the fair value was estimated at P1,100,000 and the cost of disposal at P150,000. On November 20, 2017, the asset was sold for net proceeds of P800.000.

1. What amount should be reported as impairment loss for 2017?

2. What amount should be included as loss on disposal in the statement of comprehensive income for the year ended December 31, 2017?

3. Prepare necessary journal entries.