Miracle Company manufactures a product that is packaged and sold. Each sale is accompanied by 3 coupons to be able to purchase a plate. A plate is offered to customers sending two coupons accompanied by a remittance of P2.

	2019	2018
Sale @ 250	4,200,000	3,600,000
Purchase of premium, P10 per plate	580,000	390,000
Number of plates distributed as premiums	80%	70%
Premiums distributed	17,000	13,000
Distribution cost P5 per plate

QUESTIONS:

1) What is the premium expense for 2018?

2) How much is the premium liability as of December 31, 2019?