Ziva Inc.'s own research department has an on-going project to develop a new production process. At the end of 2019, Ziva had already spent a total of P300,000 of which P270,000 was incurred before November 1,2019. On December 1,2019, the company's newly developed production process met the criteria for recognition as an intangible asset.

During 2020, Ziva incurred additional expenditures of P600,000. At the end of 2020, the recoverable amount of the intangible asset was estimated to be P570,000, including future cash outflows to complete the process before it is available for its intended use.

Required: Based on the result of your audit, determine the following:

1. At December 31,2019, the production process should be recognized at a cost of

A. 300,000

B. Zero

C. 30,000

D. 270,000

2. Total cost of the production process at December 31,2020

A. 630,000

B. 600,000

C. 870,000

D. 900,000

3. Impairment loss to be recognized by Ziva in 2020, in connection with the new production process

A. 300,000

B. Zero

C. 30,000

D. 60,000