The following information pertains to equipment constructed by a firm for its own use. The construction is finished.

• Materials used in construction, P 400,000
• Labor cost during construction, P 170,000

Fringe benefits on above labor, P 60,000

• Incremental overhead due to construction, P 80,000
• Interest expense on debt during construction, P 20,000

The interest expense meets the requirements for interest capitalization.

The market value of the equipment immediately after construction was completed was P650,000.

What is the loss on construction incurred by the firm?

zero P 60,000 P 80,000 P 20,000