CASURECO has a balance in the electric meters account of 4,000,000 on January 1, 2020. During 2020, CASURECO installed new meters as follows:

May August November

Cost of new meters installed P600,000 P800,000 P400,000

Cost of old meters replaced 340,000 - P300,000

Proceeds from sale of old meters 45,000 25,000

Using the retirement and replacement methods, what is the amount of depreciation that should be recognized in year 2020?

Retirement Replacement

a. P590,000 P 830,000

b.P570,000 P 930,000

c.P640,000 P1,000,000

d.P640,000 P 640,000