Situation 1 The entity reported the following items on December 31, 2020: Bank A - demand deposit 270,000 Undeposited customer checks 104,000 Currency and coins on hand 11.600 Savings Deposit - for plant expansion 8,000,000 Bank B - demand deposit 400,000 Treasury bills - 7 months maturity 600,000 Treasury bills - 2 months maturity 300,000 Marketable equity securities 500,000 The demand deposit in Bank B represents 20% compensating balance for a P2,000,000 loan with the bank. The entity may not withdraw the balance until the loan is repaid in 2024. Situation 2 On January 1, 2020, Aye Company acquired machinery worth P8,000,000 with a 10-year useful life and no residual value. The entity elected to use the cost model. On December 31, 2021, the entity decided to sell the asset and classified it as held for sale. The fair value less cost of disposal on such date P5, 100,000. On December 31, 2022, the entity decided to classify the asset back into property, plant and equipment since there were no buyers for the asset. On this date, the fair value less cost of disposal is P4,700,000 and the value in use is P5,500,000