On December 31, 2019, the company sold an old machinery having an original cost of P3,000,000 and Accumulated Depreciation of P1,200,000. The terms of the sale were P800,000 payable each year on December 31 of the next four years. The sale agreement made no mention of interest. However, 10% would be a fair rate for this type of transaction. (i) How much is the gain or loss on sale? (ii)How much is the carrying amount of the note receivable as of the year ended December 31, 2021?

1 point

(i)1,400,000, (ii)1,041,347

(i)101,940, (ii)1,041,347

(i)1,400,000, (ii)1,492,134

(i)101,940, (ii)1,492,134