On when the carrying amount of the net assets of a

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38. On June 30, 2015, when the carrying amount of the net assets of a business segment was P25,000,000, Delos Reyes Company signed a legally binding contract to sell the business segment. The sale is expected to be completed by March 31, 2016 at a selling price of P20,000,000. In addition, prior to March 31, 2016, the sale contract obliges Delos Reyes Company to terminate the employment of certain employees of the business segment incurring an expected termination cost of P1,000,000, final settlement under this obligation is on February 1, 2016 . The segment’s revenue and expenses for 2015 were P12,000,000 and P 10,000,000 respectively. Before the close of the year, Delos Reyes sold several assets of the discontinuing segment recording a loss on sale of P1,500,000. Before income tax, how much will be reported as loss from the discontinued segment for 2015?
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