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On January 1, 2015, Stephen, Inc. sold equipment to Noli, and simultaneously leased it back for 5 years. Pertinent information at this date is as follows:
Sales price (Fair value is P450,000) P550,000
Carrying amount 400,000
Estimated economic life 15 years
Question 1: At December 31,2015, how much should Stephen report as deferred gain from the sale of the equipment?
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