On December 1, 2019, BIR acquired a computer software for P1,000,000 and incurred the following costs:

• Non-refundable purchase taxes of P30,000 not included in the purchase price
• Professional fees incurred in the installation of the software, P100,000
• Modifications to the software before it was brought to the condition intended by management for use P60,000
• Costs of testing the software P10,000
• Training costs of staff who will be using the software, P200,000
• Costs of updating the software after it was available for use in the condition originally intended by management P5,000
• Administrative and other general overhead costs incurred on the acquisition and installation of the software P15,000

Additional information:

1. The softwares useful life is 5 years
2. The entity assesses on December 31, 2020, an indication that the asset is impaired and estimated the following values:

FV less costs to sell P700,000

Value in use 800,000

Required: Provide all indicated entries. Show all solutions.