Krem Company had a machinery costing P3,000,000 when purchased on January 2, 20x1. Estimated useful life of the asset was for 20 years with no salvage value at the end of its useful life. Krem uses the straight-line method of depreciation. On January 2, 20x6, Krem is evaluating the machinery for possible impairment. The machinery has a remaining useful life of 5 years and is expected to generate cash inflows of P500,000 per year. Krem has determined that the rate implicit in current market transaction for similar asset is 10% (PV of P1 at 10%,5 periods is 0.62 and the PV of ordinary annuity of P1 at 10%,5 periods is 3.79 ). Available information as of January 2, 206 also showed that the appropriate market price for the same asset is P1,800,000 and the estimated cost of disposal is P150,000. a. P355,000 b. P450,000 c. P600,000 d. PO (none) Other