Hello please answer the question with complete solution, thank u very much.

1. On January 1, 2020, Comm Company had ordinary and preference shares outstanding. The incorporators own ten

ordinary shares but no preference shares. On December 31, 2020, the entity declared dividends on the ordinary

shares. The entity decided to give the ordinary shareholders a choice between receiving a cash dividend of P500,000

per share or a property dividend in the form of a noncash asset, which is a standard model from the entitys car fleet.

Each car has a fair value of P600,000. The entity estimated that 80% of the ordinary shareholders will take the option

of the cash dividend and 20% will elect for the noncash asset. What is the dividend payable that should be

recognized in December 31, 2020?