Pasado Co. acquired a piece of factory equipment overseas on cash basis for $400,000. Additional costs incurred include the following: commission paid to broker for the purchase of the equipment, $20,000; import duties of P100,000; non-refundable purchase taxes of $40,000; freight cost of transferring the equipment to Pasado Co.' premises, $4,000; costs of assembling and installing the equipment, P8,000; costs of testing the equipment, P6,000; administration and other general overhead costs, P16,800; and advertisement and promotion costs of the new product to be produced by the equipment, P15,200. The samples generated from testing the equipment were sold at $2,000. How much is the initial cost of the equipment? *