The company reports profit before tax of P900,000 in its 3rd Quarter interim financial statements before the consideration of the following:

Inventory with the carrying amount of PQDJlD has a net realizable value of PTUU. It is expected that the decline will reverse in the fourth quarter. . An investment property measured under cost model has a carrying amount of P1 S but a recoverable amount ofPldD. An investment measured at FVPL with an acquisition cost of P95,UUD, has a fair value of P1 Ut} at the end of the third quarter. However, the increase is expected to be temporary only. . No depreciation is recognized during the 3rd Quarter. The annual straight-line depreciation of items ofPPE is P3,. Sheriebeth Co. has a policy of providing 12 days paid vacation leaves for its employees. The vacation leaves are vesting and accumulating. Total paid vacation leaves eligibility of employees for the full year is P24,[}[}. However, only P3 [LUCIE worth of paid vacation leaves have been availed of during the quarter. It was discovered that depreciation in the previous year was overstated by P9,[}[}