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Question - As of December 31, 2016, the carrying value of Antonio's development costs was P8,400,000. Commercial production of the product under development began in year 2016. The economic life of the product was 6 years as of December 31, 2016. Based on estimated recoverable amount, an impairment loss of P2,400,000 was recognized in December 31, 2016. At the beginning of financial year 2018, further development cost of P4,000,000 was incurred and capitalized. The directors estimated that the circumstances that led to the write-down for impairment in the 2016 no longer exist in the current year 2018. What is the carrying value of the development asset as of December 31, 2018?
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