Relevant extracts from the financial statements at December 31, 2021 of Cal Company are as follows: Provision for warranties Current, P270,000 Noncurrent, P180,000 Note 35 Contingent liabilities Cal is engaged in litigation with various parties in relation to allergic reactions to traces of peanuts alleged to have been found in packets of fruit gums. Cal strenuously denies the allegations and, as at the date of authorizing the financial statements for issue, is unable to estimate the financial effect, if any, of any costs or damages that may be payable to the plaintiffs. The provision for warranties at December 31, 2021 was calculated using the following assumptions. There was no balance carried forward from the prior year: Estimated costs of repairs products with minor defects, P1,000,000 Estimated costs of repairs - products with major defects, P6,000,000 Expected of products sold during 2021 having no defects in 2022, 80% Expected of products sold during 2021 having minor defects in 2022, 15% Expected of products sold during 2021 having major defects in 2022, 5% Expected timing of settlement of warranty payments those with minor defects, All in 2022 Expected timing of settlement of warranty payments - those with major defects, 40% in 2022, 60% in 2023 During the year ended December 31, 2022 the following occurred: 1. In relation to the warranty provision of P450,000 at December 31, 2021, P200,000 was paid out of the provision. Of the amount paid, P150,000 was for products with minor defects and P50,000 was for products with major defects, all of which related to amounts that had been expected to be paid in 2022. 2. In calculating its warranty provision for December 31, 2022, Cal made the following adjustments to the assumptions used for the prior year: Estimated costs of repairs products with minor defects, No change Estimated costs of repairs products with major defects, P5,000,000 Expected of products sold during 2022 having no defects in 2023, 85% Expected of products sold during 2022 having minor defects in 2023, 13% Expected of products sold during 2022 having major defects in 2023, 2% Expected timing of settlement of warranty payments minor defects, All in 2023 - those with