With explanation po

5. Dua Lipa, Inc., a calendar-year firm, currently uses a plant asset in operations that originally cost P110,000 and has a useful life of eight years and a P10,000 residual value at the end of its useful life. Dua Lipa uses the straight-line method. As a result of a recent law restricting the use of the product produced by the asset, Dua Lipa reviews the asset for impairment. As of January 1, 2017, the beginning of the asset's third year of useful life, total remaining cash inflows attributable to the asset are estimated to be 120,000, while total cash outflows in running and maintaining the machine are estimated to be P65,000. Based on quited prices and the condition of the asset, Dua Lipa estimates the fair value of the asset to be P40,000. The cost to sell the asset is approximately 5,000. Dua Lipa plans to continue to use the asset in production, although at a much lower rate of utilization. Assume 8% as the appropriate discount rate. a. Record the impairment loss on January 1, 2017. b. Record the depreciation on the asset on December 31, 2017. Assume no change in residual value at the end of the asset's useful life