Hi, tutors! I am reviewing for my CPA exam and I thought I could use your help.

Here's my question:

Encantadia Company sold an item of plant and machinery on January 1, 2020 for $2,500,000 which is equal to its fair value. The carrying amount of the asset was P2,000,000.

The entity leased it back on that date for remaining useful life of 5 years. Lease payments are $700,000 on January 1 each year.

(1) Under IAS 17, the gain or loss on disposal for 2020.

(2) Under IAS 17, the total finance charge over the lease term.

(3) How would the answers differ if IFRS 16 had been applied?

Thanks so much. I tip for the answer that is well-explained. I would also appreciate if you could give reference to the applicable IFRS provisions. Thanks.