RS Inc. acquired a delivery truck for P2,100,000 on January 1, 2018. The delivery truck has useful life of 5 years and residual value of 100,000 and to be depreciated using SYD method. On January 1, 2020, BRS decided to use straight line method for depreciating the truck and determined that the remaining useful life of the truck as of this date should be 4 years. The residual value remains the same. On July 1, 2021, the delivery truck was sold for P450,000 and BRS Inc. incurred disposal cost of P50,000. What is the carrying value of the delivery truck on December 31, 2020? P800,000 P633,333 P700,000 P500,000 Using the same data, what is the gain/(loss) on disposal to be recognized on July 1, 2021? (P100,000) (P200,000) P100,000 P50,000

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