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The branch in Malaysia of Luzon corporation, a Philippine enterprise has property and equipment with a cost of 72,000 Ringgit on December 31, 2018. Of this amount, machinery with a cost of 48,000 Ringgit was acquired in 2016 when the exchange rate was 1 Ringgit to P11.12. The exchange rate on December 31, 2018 was 1 Ringgit to P12.5; and equipment with a cost of 24,000 Ringgit was acquired in 2017 when the exchange rate was 1 Ringgit to P11.12. The exchange rate on December 31, 2018 was 1 Ringgit to P10.00, and the weighted average for 2018 was 1 Ringgit to P10.42. The Malaysian branch depreciates property and equipment by the straight line method over a 10 year economic life with no residual value. In the translated income statement of the Malaysian branch, what is the 2018 depreciation expense in Philippine Peso?

Sunrise company has bonds payable with face value of P10,000,000 and a carrying amount of P9,600,000. In addition, unpaid interest on the bonds has been accrued in the amount of P500,000. The creditor has agreed to the settlement of the bonds payable in exchange for 100,000 shares of P50 par value. The shares have a current market value of P9,000,000. The fair value of the bonds payable is P9,200,000. If the fair value of the equity instruments is used, how much is the gain on extinguishment of debt?  

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