On March 1, 20x7, the AMU Company sold machine for P155,000. The machine costs P100,000.The customer is

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On March 1, 20x7, the AMU Company sold machine for P155,000. The machine costs P100,000.The customer is allowed a trade-in allowance of P50,000 for an old machine, a down payment of P45,000 was made and the balance is to be paid in 12 monthly installments of P5,000 each payable at the end of each month beginning March 31. AMU uses the installment method to account for the sale. The old machine is estimated to have a resale value of P70,000 after incurring a reconditioning cost of P7,500. The seller expects a 20% profit from the sale of used machine; commission is 5%.
What is the fair market value of the machine received?
a. P62,500
b. P45,000
c. P48,500
d. P70,000