On March 31, 2020, Sterne Corp. retired a machine used in manufacturing designer parts. The machine was acquired May 1, 2017. Straight-line depreciation method was used computed up to the last month before retirement. The asset had an estimated residual value of P20,000 and a fiveyear life. On December 31, 2019, the balance in the accumulated depreciation is P320,000. The machine was scrapped and the company did not receive a single consideration.

Required:

1. The loss on retirement is: (round off to the nearest peso, if needed)

2. Prepare the journal entry to record the retirement.