Jilmar Company acquired a delivery truck and made payment of P2,870,000 analyzed as follows: Price of truck - P2,500,000 Charge for extra equipment - P150,000 Value added tax (recoverable) - P300,000 Insurance for one year - P100,000 Motor vehicle registration - P20,000 Trade in value of old truck - P2,000,000 Cash paid - P2,870,000 The cost of the old truck was P1,500,000 with carrying amount of P400,000 and fair value of P350,000. 1. What is the cost of the new truck in the exchange? 2. What amount should be recognized as loss on exchange?