The client reports on a calendar - year basis. On May 1, 2020, the client bought a machine for P360,000. The machine has an estimated useful life of 10 years with no salvage value. On May 1, 2023, P45,000 was spent to overhaul the machine. The overhaul extended the life of the machine for 2 years. On September 30, 2024, the machine was sold for P180,000.

REQUIRED:

Compute for the :

1. Depreciation expense of the machine for the year 2023. 2. Gain or loss on the sale of the machine.