Ella company purchased an equipment for P12,000,000 on January 1, 2018. The equipment had a useful life of 5 years with no residual value. On December 31, 2018, the entity classified the asset as held for sale. On such date the fair value less cost of disposal of the equipment was P8,400,000. On December 31, 2019, the entity believed that the criteria for classification as held for sale can no longer be met. Accordingly, the entity decided not to sell the asset but to continue to use it. On December 31, 2019, the fair value less cost of disposal of the equipment was P6,480,000. What is the carrying amount of the equipment on December 31, 2020?