An entity is committed to a plan to sell a manufacturing facility in its present condition and classifies the facility as held for sale at that date. After a firm purchase commitment is obtained, the...

An entity is committed to a plan to sell a manufacturing facility in its present condition and classifies the facility as held for sale at that date. After a firm purchase commitment is obtained, the buyer's inspection of the property identifies environmental damage not previously known to exist. The entity is required by the buyer to make good the damage, which will extend the period required to complete the sale beyond one year. However, the entity has initiated actions to make good the damage, and satisfactory rectification of the damage is highly probable. The manufacturing facility has a carrying amount of P10,000,000 and fair value less costs to sell of $10,600,000. How should the entity classify the manufacturing facility?

a. Held for sale, 10.6M
b. Held for sale, 10M

c. PPE, 10M
d. PPE, 10.6M