On January 1, 20x1 Plaka Co. acquired goods for sale in the ordinary course of business for P250,000, excluding P5,000 refundable purchase taxes. The supplier usually sells goods on 30 days' interest-free credit. However, as a special promotion, the purchase agreement for these goods provided for payment to be made in full on December 31, 20x1. Transport charges of P2,000 were paid on January 1, 20x1. An appropriate discount rate is 10 per cent per year. 12. How much is the initial cost of the inventories?