On January 1, 2019, Budma Company acquired machinery worth P6,000,000 with a 10-year useful life and no residual value. The entity elected to use the cost model. On December 31, 2020, Budma decided to sell the asset and classified it as held for sale. The fair value less cost of disposal on such date is P4,100,000. On December 31, 2021, Budma decided to classify the asset back into property, plant and equipment since there were no buyers for the asset. On this date, the fair value less cost of disposal is P3,700,000 and the value in use is P4,000,000.

a.) What amount of impairment loss should be recognized for 2020?

b.) What amount of gain or loss on reclassification should be recognized for 2021? (use negative sign if loss)